I would like to highlight some observations about the statement of cash flows, make a quick point about mortality assumptions in defined benefit accounting and then turn our attention to accounting for amendments to or exchanges of preferred stock.
Dividends paid Bank overdrafts IAS7 treats bank overdraft generally as borrowings current liabilities.
If this is the case then any changes in overdraft shall be disclosed under the heading financing activities. ASC however, bank overdrafts are simply treated as short-term borrowings and any fluctuation is disclosed as financing activities cash flows.
Bank overdrafts are not permitted to be included as a component of cash and cash equivalents. Taxes paid IAS 7 requires a separate disclosure of any cash flows relating to income tax. In essence IAS 7 permits the disclosure of income tax cash flows under headings other than operating activities if such cash flows can be specifically identified.
AS requires all of the tax related cash flows to be disclosed as operating cash flows. However, there is one exception to it.
If entity has received any tax benefits arisen due to increase in the value of instruments issued under share-based payments then such cash flows are disclosed as financing cash flows.
Cash flow per share ASC specifically prohibits disclosure of cash flow per share. ASC further states that cash flow statement is not intended to present the financial performance of the entity as we already have another financial statement for that purpose.
IAS 7 contains no such prohibition.
Disclosing non-cash investing and financing activities ASC requires non-cash investing and financing activities to be reported in a separate schedule which can either be appended to statement of cash flows or included in the notes to the financial statements.
IAS 7 has no such requirements regarding specific schedule summarizing noncash transactions. Disclosure requirements ASC has a detailed disclosure requirement. IAS 7 on the other hand has almost basic disclosure requirements.Start studying Accounting ASC Codes.
Learn vocabulary, terms, and more with flashcards, games, and other study tools.
Presentation guidance for the statement of cash flows in ASC states that information about the gross amounts of cash receipts and cash payments during a period is generally more relevant than information about the net amounts of cash receipts and cash payments.
The Financial Accounting Standards Board (“FASB”) has issued an Exposure Draft for Proposed Accounting Standards Update, Statement of Cash Flows (Topic ): Restricted Cash.
The Exposure Draft addresses how entities classify and present restricted cash changes on cash flow statements under Topic Learn the cash flow reporting requirements of ASC , Statement of Cash Flows (previously FAS 95) and related standards Be able to identify the 3 major classifications of cash flows and what needs to be disclosed as supplemental information.
asc This reference shows the preparation and presentation of cash flow statement for manufacturing units that have foreign operations. This reference deals with the accounting and formatting of reconciliation of net income to net cash flows from operating activities with the detailed description of relevant data and information for.
This course discusses the requirements of ASC , Statement of Cash Flows (ASC and ). ASC , Not-for-Profit Entities: Presentation of Financial Statements, requires the statement of cash flows for not-for-profit entities. Field of Study Accounting Level of Knowledge Basic to Intermediate Prerequisite Basic Accounting.