Accounting for the statement of cash flows (93325123) - Online

This course will introduce you to the Statement of Cash Flows, including the three core sections – ‘operating’, ‘investing’ and ‘financing’ activities. The aim is to assist you to prepare a basic Statement of Cash Flows using a Statement of Comprehensive Income and a comparative Statement of Financial Position. You will learn why a Statement of Cash Flows is beneficial and you will complete an exercise to prepare a basic Statement of Cash Flows with associated notes.

Key topics:

• Purpose, limitations and benefits of the Statement of Cash Flows
• Overview of cash flow reporting requirements
• Converting accrual accounting data to cash flow data
• Direct and indirect methods of preparing the Statement of Cash Flows
• Cash flow spreadsheets
• ABC Learning Centres Ltd case study
• Consolidated Statement of Cash Flows
• Cash flow tips
• Sustainable cash flows

This course consists of one interactive online course, one downloadable PDF learning manual and one online assessment.

• Discuss the uses and limitations of the Statement of Cash Flows in the context of the overall reporting framework
• Identify key issues relating to:
  • the concept of cash and cash equivalents
  • the effect of foreign currency on the Statement of Cash Flows
  • Value added taxes (including Goods and Services Tax (GST))


• Prepare a Statement of Cash Flows using the direct and indirect methods, including note disclosures
• Examine high profile corporate collapses involving cash flows
• Prepare a cash flow spreadsheet by eliminating accrual based financial position and comprehensive income data
• Prepare a comprehensive consolidated Statement of Cash Flows with associated notes incorporating both the acquisition and disposal of a subsidiary entity
• Identify some common errors in the Statement of Cash Flows, including methods that organisations sometimes use to manipulate cash flows