AccountingBasics英語(yǔ)會(huì)計(jì)基礎(chǔ)教學(xué)實(shí)用教案

1、STATEMENT OF CASH FLOWS:USEFULNESS AND FORMATA statement of cash flows provides information about an entitys cash receipts and cash payments during a periodIt answers the questions: Where did the cash come from during the period? What was the cash used for during the period? What was the change in t

2、he cash balance during the period?1LO1第1頁(yè)/共44頁(yè)第一頁(yè)，共45頁(yè)。Usefulness of the statement of cash flows Helps investors, creditors and other interested parties to evaluate the following about the entity: Ability to generate future cash flows Ability to pay dividends and meet obligations Reasons for differe

3、nce between profit and net cash provided (used) by operating activities Cash investing and financing transactions for the period2第2頁(yè)/共44頁(yè)第二頁(yè)，共45頁(yè)。Classification of cash flows Operating activities Cash effects of transactions that create income and expenses Investing activities Cash effects resulting

4、 from acquisition and disposal of long-term assets Financing activities Cash effects resulting from long-term borrowing and shareholders equity3LO2第3頁(yè)/共44頁(yè)第三頁(yè)，共45頁(yè)。Operating activitiesAre transactions involving the acquisition or production of goods and services and the sale and distribution of thes

5、e goods and services to customers. Current asset and current liability transactions normally result from the operating activities of a company, such as buying and selling merchandise.4第4頁(yè)/共44頁(yè)第四頁(yè)，共45頁(yè)。The acquisition/disposal of long-term assets and other investments during a financial period. Examp

6、les include:Cash inflows fromCash outflows toSale of non-current assets (PP&E, intangibles, share investments)Acquire non-current assets (PP&E, intangibles, share investments)Repayments of loans advanced to other partiesLend money to other partiesInvesting activities第5頁(yè)/共44頁(yè)第五頁(yè)，共45頁(yè)。 Transac

7、tions between a company and its owners or between a company and its long-term creditors. Examples include:Cash inflows fromCash outflows toIssuing shares and other equity instrumentsIssuing bonds and other borrowingsBuy back sharesRepay bonds and other borrowingsPay dividends (cash dividend)Financin

8、g activities第6頁(yè)/共44頁(yè)第六頁(yè)，共45頁(yè)。Significant non-cash activities Significant financing and investing activities that do not affect cash are not reported in the body of the statement of cash flows, but are disclosed elsewhere in the financial statement Examples include Issue of shares to purchase assets

9、Conversion of bonds into shares Issue of debt to purchase assets Exchanges of PPE assets7第7頁(yè)/共44頁(yè)第七頁(yè)，共45頁(yè)。Format of the statement of cash flows8Cash flows from operating activities(List of individual items)xxNet cash from (used by) operating activitiesxxxCash flows from investing activities(List of

10、individual inflows and outflows) xxNet cash from (used by) investing activitiesxxxCash flows from financing activities(List of individual inflows and outflows) xxNet cash from (used by) financing activitiesxxxNet increase (decrease) in cashxxxCash at beginning of periodxxxCash at end of periodxxxLis

11、ted elsewhere in the financial statementMaterial non-cash investing and financing activities(List of individual non-cash transactions)xxxCOMPANY NAMEStatement of Cash FlowsPeriod covered 第8頁(yè)/共44頁(yè)第八頁(yè)，共45頁(yè)。Preparing the statement of cash flowsThere are 3 sources of information to prepare the statement

12、 of cash flows:1 Comparative statements of financial position2 Current income statement3 Additional information (about transactions that occurred during the period)9第9頁(yè)/共44頁(yè)第九頁(yè)，共45頁(yè)。The following information has been provided on the following slides in relation to A Ltd for the year ending 30 June 2

13、011:nStatement of comprehensive incomenStatement of financial positionnAdditional informationRequired:Prepare the statement of cash flows of A Ltd for the year ending 30 June 2011 (using the direct method of disclosure for cash flows from operating activities)Preparing the statement of cash flows- E

14、xample第10頁(yè)/共44頁(yè)第十頁(yè)，共45頁(yè)。A Ltd Statement of Comprehensive Income for the year ending 30 June 2011Sales revenue520,000Interest revenue4,300Gain on sale of plant & equipment2,500TOTAL REVENUE527,500Cost of goods sold276,300Depreciation plant & equipment38,500Other expenses135,000TOTAL EXPENSES4

15、50,500PROFIT BEFORE TAX77,000Income tax expense52,500PROFIT FOR THE YEAR24,500第11頁(yè)/共44頁(yè)第十一頁(yè)，共45頁(yè)。A Ltd comparative Statements of Financial Position20102011Cash at bank152,0003,000Accounts receivable97,500180,000Inventory182,500305,500Prepayments8,0009,500Interest receivable1,0001,500Plant & equi

16、pment207,000300,000Accum. Depreciation PP&E(27,000)(55,500)Total assets621,000744,000第12頁(yè)/共44頁(yè)第十二頁(yè)，共45頁(yè)。A Ltd comparative Statement of Financial Position20102011Bond payable120,00036,700Accounts payable36,20029,300Other payables3,0001,800Current tax liability43,50053,400Dividend payable20,00015,

17、000Share capital250,000450,000Retained earnings148,300157,800Total liabilities & equity621,000744,000第13頁(yè)/共44頁(yè)第十三頁(yè)，共45頁(yè)。Additional Information Plant & equipment that had originally cost $55,000 and had been depreciated by $10,000 was sold during the year. During 2010-2011 A Ltd issued shares

18、 for cash.第14頁(yè)/共44頁(yè)第十四頁(yè)，共45頁(yè)。Direct and indirect methods Operating activities are reported using two methods: direct and indirect The international accounting standard on cash flows allows entities to choose either method If an Australian entity chooses the direct method, a reconciliation of net cas

19、h flows from operating activities to profit must be disclosed in the notes to the financial statements15第15頁(yè)/共44頁(yè)第十五頁(yè)，共45頁(yè)。16The direct method cash inflows less cash outflows = net cash inflow/(outflow). The indirect method where the accrual-based net profit is converted into cash amounts by adjusti

20、ng for non-cash items and by analysing the movements in various accounts to establish the cash amount.Direct and indirect methods第16頁(yè)/共44頁(yè)第十六頁(yè)，共45頁(yè)。STATEMENT OF CASH FLOWS DIRECT METHODThere are 3 steps in the preparation:1 Operating activities Determine net cash provided/used by operating activitie

21、s by converting from cash to accrual basis2 Investing and financing activities Analyse changes in non-cash assets and liabilities3 Net change in cash Compare net change in cash in statement of cash flows with change on the statement of financial position17LO3第17頁(yè)/共44頁(yè)第十七頁(yè)，共45頁(yè)。Step 1: Operating acti

22、vities18第18頁(yè)/共44頁(yè)第十八頁(yè)，共45頁(yè)。Step 1: Operating activities Cash receipts from customers Sales revenue reflects sales made by the entity during the year irrespective of whether the customers have paid for the sale Cash received in the current year includes sales made in the prior year that are not colle

23、cted until the current year and excludes sales made in the current year where the cash will be received in a future year Therefore the cash flows are determined with reference to the movement in Accounts Receivable 19第19頁(yè)/共44頁(yè)第十九頁(yè)，共45頁(yè)。Step 1: Operating activities Cash receipts from customers Use sa

24、les and comparative accounts receivable account balances Formula to calculate cash receipts from customers:20Cash receipts Sales + Decrease in accounts receivable from = Revenue or customers Increase in account receivable第20頁(yè)/共44頁(yè)第二十頁(yè)，共45頁(yè)。Step 1: Operating activities Cash receipts from customers21A

25、ccounts Receivable Opening Balance Cash Receipts from Sales Revenue customers Closing BalanceCash receipts = Opening Balance + Sales Revenue - from customers Closing Balance第21頁(yè)/共44頁(yè)第二十一頁(yè)，共45頁(yè)。Step 1: Operating activities continued Cash payments to suppliers Reflects payments made during the year fo

26、r: Inventory purchases All other supplies and services purchasedIncludes: Payments for prior year purchases Current year (pre)payments that will be expensed in future years Excludes: Current year purchases where the cash will be paid in a future year Expenses recognised in the current year that were

27、 (pre)paid in prior years22第22頁(yè)/共44頁(yè)第二十二頁(yè)，共45頁(yè)。Step 1: Operating activities continued Cash payments to suppliers Use cost of sales and comparative accounts payable and inventory Two steps: calculate amount of purchases made during period, then the amount of cash paid to suppliers for purchases23 Cas

28、h Cost of + Increase in inventory + Decrease inpayments = goods oraccounts payableto suppliers sold Decrease in inventory or Increase in accounts payable 第23頁(yè)/共44頁(yè)第二十三頁(yè)，共45頁(yè)。Inventory Opening Balance Cost of salesPurchases Closing BalanceStep 1: Operating activities continued Cash payments to suppli

29、ers24Accounts Payable Payment to Opening Balance Suppliers Purchases Closing Balance第24頁(yè)/共44頁(yè)第二十四頁(yè)，共45頁(yè)。Step 1: Operating activities continued Cash payments for expenses Use various expense accounts and comparative prepaid expense accounts and accrued expense accounts Two steps: calculate changes to

30、 prepaid expenses, then the amount of cash paid for expenses25 + Increase in prepaid + Decrease in Cash expenses accrued expenses payments for = Expenses orpayable expenses or Decrease in prepaid Increase in expenses accrued expenses payable 第25頁(yè)/共44頁(yè)第二十五頁(yè)，共45頁(yè)。 Cash payments for expensesPrepaid Acc

31、ounts Opening Balance Prepaid Expenses Cash Payment Closing BalanceStep 1: Operating activities continued26Accrued Payable Opening Balance Cash Payment Accrued Expenses Closing Balance第26頁(yè)/共44頁(yè)第二十六頁(yè)，共45頁(yè)。Step 1: Operating activities continued Depreciation expense and loss on sale of equipment Expens

32、es are shown exclusive of depreciation because it is a non-cash expense Loss on sale of equipment reduces profit, but does not reduce cash and is therefore is not reported on statement of cash flows27第27頁(yè)/共44頁(yè)第二十七頁(yè)，共45頁(yè)。Step 1: Operating activities continued Cash payments for income taxes Use income

33、 tax expense and comparative tax payable balances28 Cash + Decrease in income taxespayments for = Income tax payableIncome taxes expense or Increase in income taxes payable第28頁(yè)/共44頁(yè)第二十八頁(yè)，共45頁(yè)。Step 1: Operating activities Cash payments for income taxes29Income Tax Payable Cash Payment for Opening Bal

34、ance Income tax Income Tax Expense Closing BalanceCash payment = Opening Balance + Income Tax for income taxes Expense - Closing Balance第29頁(yè)/共44頁(yè)第二十九頁(yè)，共45頁(yè)。Step 2: Investing activities30This step involves analysing balance sheet data and income statement data and selected additional information for

35、the effects of cashTransactions relating to non-current assets: property, plant and equipment loans to other entitiesNon-cash transactions are not included第30頁(yè)/共44頁(yè)第三十頁(yè)，共45頁(yè)。Step 2: Investing activities Increase in landIf ordinary shares are issued to purchase land, this will be significant non-cash

36、 transaction Increase and decrease in equipmentUse depreciation expense, loss or gain on sale, and comparative equipment and accumulated depreciation accounts, plus additional informationCheck comparative balances from balance sheet for amounts not accounted for31第31頁(yè)/共44頁(yè)第三十一頁(yè)，共45頁(yè)。Step 2: Investin

37、g activities Increase and decrease in equipment32Equipment Opening Balance Cost of equipment Additional Purchase Sold Closing BalanceAccumulated Depreciation Opening Balance Sale of Equipment Depreciation Expense Closing Balance第32頁(yè)/共44頁(yè)第三十二頁(yè)，共45頁(yè)。Step 2: Financing activities This step involves anal

38、ysing comparative balance sheet data and selected additional information for the effects of cash Relates to debt and equity of company Use net profit and notes payable, issued shares and retained profit accounts33第33頁(yè)/共44頁(yè)第三十三頁(yè)，共45頁(yè)。Step 2: Financing activities Bonds payable Cash inflow = cash recei

39、ved from issue of bonds Cash outflow = cash paid upon payment of bonds Check additional information for details (e.g. non-cash transactions that are not included in statement)34第34頁(yè)/共44頁(yè)第三十四頁(yè)，共45頁(yè)。Step 2: Financing activities Increase in ordinary shares Check additional information for details If no

40、ne, assume increase/decrease represents cash received/paid If non-cash transaction, check that details account for changes to issued share balances Retained earnings Profit not reported in statement of cash flows Declaration and payment of cash or share dividend35第35頁(yè)/共44頁(yè)第三十五頁(yè)，共45頁(yè)。Step 3: Net chan

41、ge in cash Compare the net change in cash on the statement of cash flows with the change in the cash account reported on the statement of financial position to make sure they agree36第36頁(yè)/共44頁(yè)第三十六頁(yè)，共45頁(yè)。Example solutionA Ltd statement of cash flow for the year ending 30 June 201137第37頁(yè)/共44頁(yè)第三十七頁(yè)，共45頁(yè)

42、。A Ltd Statement of Cash Flows for the year ending 30 June 2011Cash flows from operating activitiesReceipts from customers437,500Cash payments: to suppliers406,200 for other expenses137,700 for income taxes42,600586,500Interest received3,800Net cash used by operating activities(145,200)Cash flows fr

43、om investing activitiesPayments for plant & equipment148,000Proceeds on sale of plant & equipment47,500Net cash used by investing activities(100,500)Continued on following slide第38頁(yè)/共44頁(yè)第三十八頁(yè)，共45頁(yè)。A Ltd Statement of Cash Flow for the year ending 30 June 2011Cash flows from financing activiti

44、esRepayment of Bonds 83,300Proceeds from share issue200,000Dividends paid20,000Net cash flows from financing activities96,700Net decrease in cash (149,000)Cash at beginning of year152,000Cash at end of year3,000第39頁(yè)/共44頁(yè)第三十九頁(yè)，共45頁(yè)。STATEMENT OF CASH FLOWS INDIRECT METHOD40LO4第40頁(yè)/共44頁(yè)第四十頁(yè)，共45頁(yè)。STATEMENT OF CASH FLOWS INDIRECT METHODUnder the i