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Understanding the statement of cash flows
Overview
This course will introduce you to the Statement of Cash Flows, including the three core sections operating, investing and financing activities. 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.
The course will also discuss some of the common practical issues arising from the application of IAS 7 Statement of Cash Flows, including the updates on how revenue from contracts with customers and leases should be presented in the Statement of Cash Flows.
You will also learn why a Statement of Cash Flows is beneficial and will have the opportunity to 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
- Converting accrual accounting data to cash flow data
- Key elements of Statement of Cash Flows Operating, Investing and Financing
- Direct and indirect methods of preparing the Statement of Cash Flows
- Cash flow tips on how to avoid common traps and practical application issues
- Presentation and disclosure requirements
This course consists of one interactive online course, one downloadable PDF learning manual and one online assessment.
What you'll learn
- Recognise the importance, benefits and limitations of the statement of cash flows
- Construct cash inflows and outflows from accrual accounting data
- Distinguish cash flows relating to operating, investing and financing activities
- Understand tips on how to prepare a statement of cash flows using both the direct and indirect methods (including the reconciliation of net profit after tax to net cash flows from operating activities required for Australian entities
- Identify the presentation format and disclosure requirements of a statement of cash flows
Identify a range of common issues arising in the preparation of a statement of cash flows.
Who is this for ?
