The aim of this course 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.
Overview
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.
Objectives
- 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
Audience
This course is specifically designed for accounting and finance professionals who are involved in external reporting, financial management, financial accounting and auditing.