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Statement of Cash Flows: Preparation, Presentation, and Use
book

Statement of Cash Flows: Preparation, Presentation, and Use

by Tom Klammer
April 2018
Intermediate to advanced content levelIntermediate to advanced
288 pages
5h 27m
English
Wiley
Content preview from Statement of Cash Flows: Preparation, Presentation, and Use

Chapter 5 OPERATING SECTION REPORTING ISSUES

This chapter continues the focus on the operating section. The presentation and reporting issues discussed here exist because of the current statement of cash flows classification requirements. Knowing what these issues are, why they are issues, and how to present information related to these items is an essential element of preparing a useful statement of cash flows that satisfies current reporting guidance. Specifically, this chapter focuses on issues related to reconciliation across financial statements, cash flow from operations totals, the treatment of business combinations and asset dispositions, bad debts, and the sales of receivables.

Several review exercises and a comprehensive example related to statement presentation details are provided to complete the discussion of the general-purpose cash flow reporting requirements.

LEARNING OBJECTIVES

After completing this chapter, you should be able to do the following:

     Recognize why cash flow changes may not reconcile with statement of financial position changes.

     Identify issues related to total cash from operations.

     Recall how to report selected operating items such as interest, taxes, and receivables.

     Indicate how a business combination or disposition affects the statement of cash flows.

Each of the areas discussed can be potentially troublesome in preparing an understandable statement of cash flows. New reporting guidance will eventually address many ...

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Publisher Resources

ISBN: 9781119508984Purchase book