Download or read book Flexibility in Cash Flow Classification Under IFRS written by Elizabeth A. Gordon and published by . This book was released on 2017 with total page 50 pages. Available in PDF, EPUB and Kindle. Book excerpt: International Financial Reporting Standards (IFRS) allow managers flexibility in classifying interest paid, interest received, and dividends received within operating, investing, or financing activities within the statement of cash flows. In contrast, U.S. Generally Accepted Accounting Principles (GAAP) requires these items to be classified as operating cash flows (OCF). Studying IFRS-reporting firms in 13 European countries, we document firms' cash-flow classification choices vary, with about 76%, 60%, and 57% of our sample classifying interest paid, interest received, and dividends received, respectively, in OCF. Reported OCF under IFRS tends to exceed what would be reported under U.S. GAAP. We find the main determinants of OCF-enhancing classification choices are capital market incentives and other firm characteristics, including greater likelihood of financial distress, higher leverage, and accessing equity markets more frequently. In analyzing the consequences of reporting flexibility, we find some evidence that the market's assessment of the persistence of operating cash flows and accruals varies with the firm's classification choices and the results of certain OCF prediction models are sensitive to classification choices.

Download or read book How Does Uniformity Or Flexibility in Cash Flow Statement Classification Standards Affect Comparability written by Mayer Chunzi Liang and published by . This book was released on 2022 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: Cash flow classification aims to create comparable cash flow information by classifying similar items together and different items separately. Current cash flow classification guidance is a collection of uniform and flexible standards with differences in standard setting approaches sometimes used for the same items within and across GAAP and IFRS. It is an open question whether and under which conditions uniform or flexible standards improve cash flow comparability. A positive theory of accounting standards suggests that flexibility (discretion) in standards is useful in reflecting heterogeneity among transactions but suffers from reporting opportunism. Exploiting variation in discretion permitted under U.S. GAAP and IFRS in classifying cash interest paid, and cash interest and dividends received, I find that flexible standards (IFRS) better promote comparability than uniform standards (U.S. GAAP) when firms' interest and dividend cash flow generating activities are more different in nature than those of peers. Second, greater classification opportunism undermines comparability more so under flexible standards than under uniform standards. This is the first study to comprehensively examine the role of discretion in standards on cash flow comparability and provides timely evidence for IASB's current effort to improve cash flow statement comparability via changes in classification guidance.

Download or read book Accounting Cash Flow and Value Relevance written by Francesco Paolone and published by Springer Nature. This book was released on 2020-07-29 with total page 116 pages. Available in PDF, EPUB and Kindle. Book excerpt: Although the concept “Cash is King” is today widely recognized, the cash flow statement was rather neglected until the EU accounting regulators discovered its relevance in explaining the real value of the business. This book investigates the value relevance of the operating cash flow as reported under the International Financial Reporting Standards (IAS/IFRS) for the largest European listed companies and US listed companies in the past recent years. Using the model based on the valuation theory developed by Ohlson, which measures the market value of equity as a function of accounting variables, the author concludes that operating cash flow represents a significant variable in determining the value relevance of the largest European and US listed companies. These findings provide siginificant implications for standard setters and support the continued requirements for disclosure of cash flow information under IAS 7.

Download or read book Statement of Cash Flows written by Dirk Maßing and published by GRIN Verlag. This book was released on 2003-01-31 with total page 26 pages. Available in PDF, EPUB and Kindle. Book excerpt: Seminar paper from the year 2002 in the subject Business economics - Accounting and Taxes, grade: 2.0 (B), Technical University of Braunschweig (Institute for Economics), course: International Accounting, language: English, abstract: This seminar paper will give an introduction to the statement of cash flows which is required as part of the financial statements of the US-GAAP. The statement facilitates the analysis of the liquidity, solvency, and financial flexibility of the firm. In german law a statement of cash flows was first introduced in 1998 by the KonTraG 1.2 In accordance with this law (resp. additions to existent law) german companies must publish such a statement when they are listed at the stock market.3 The mission and content of the statement in german law is not defined in German Commercial Code (HGB) but provided by the German Accounting Standards Committee (GASC) with German Accounting Standards No. 2 (GAS 2). It is drawn near IAS 7 of the International Accounting Standards and Statement of Financial Accounting Standards (SFAS) No. 95 of US-GAAP. The Security and Exchange Commission (SEC) sees cash flow statements of IAS 7 and SFAS No. 95 equally and excepts both.4 Because there are not many dierences between SFAS No. 95 and IAS 7 this paper just focuses on the US-GAAP.5 The statement of cash flows is structured in three sections. To set up the first section – called operating activities – you can choose either a direct or and indirect method. Both methods show the same investing and financing cash flows, and both show the reconciliation of net income and net operating cash flows. The main difference is that only the direct method shows the actual operating cash flows such as collections from customers and payments to suppliers. The indirect method uses the reconciliation as its operating activities section, that is why it is also called reconciliation method. When describing the content or giving examples of the statement the indirect method is used always in this paper. In spite of the fact that after SFAS No. 95 the Financial Accounting Standards Board (FASB) is preferring the direct method most companies are using the indirect method. This is because in most cases companies do not store all relevant data in their information system to use the direct method. In the other two sections – investing and financing activities – the direct method must be used.6 In the second part this work will give an overview and is showing details of form and content of the statement of cash flows according to the SFAS No 95, as well as it is presenting information about how to prepare the statement [...]

Download or read book Financial Reporting under IFRS written by Wolfgang Dick and published by John Wiley & Sons. This book was released on 2010-10-11 with total page 358 pages. Available in PDF, EPUB and Kindle. Book excerpt: The International Financial Reporting Standards are quite different from other sets of accounting standards, and are fundamentally different from US-GAAP, in that they are based on principles, and not on detailed rules. Financial Reporting under IFRS:A topic-based approach offers a global perspective on IFRS by presenting the prescribed rationale and principles and illustrating them through numerous examples from large international companies. It aims to develop the fundamental skills necessary to read and use the information contained in all types of financial statements, through examples, activities, questions and answers. The book is broadly divided into three sections. Section one examines the structure of the Balance Sheet and the Income Statement, their links and the accounting mechanisms used to prepare them. Section two deals with the identification, evaluation and reporting of Balance Sheet items. Section three covers the use of financial statements to analyze a firm’s performance and its risks. Throughout the book special topics are covered, including Derivatives and Hedge accounting (IAS 39), Business Combination (IFRS 3) and Operating Segments (IFRS 8). Financial Reporting under IFRS is ideally suited to the needs of students of accounting and financial reporting, but all users of financial statements, from creditors and investors to suppliers, customers, employees and governments will benefit from its concise, topic-based approach.

Download or read book Designing Flexible Cash Flows written by Scott Fawcett and published by Taylor & Francis. This book was released on 2013-10-08 with total page 107 pages. Available in PDF, EPUB and Kindle. Book excerpt: Whether calculating a net present value, assessing an internal rate of return, or considering the impact of debt on a transaction when analysing investments in property it is very hard to get away from the need for cashflows. These cashflows range from the very simple to the extremely complex and can take anything from minutes to days to produce. Of course, valuation software exists that will produce these for you - but sometimes there are situations where you can't avoid having to do the job yourself!

Download or read book Creative Cash Flow Reporting written by Charles W. Mulford and published by John Wiley & Sons. This book was released on 2005-05-13 with total page 432 pages. Available in PDF, EPUB and Kindle. Book excerpt: Successful methodology for identifying earnings-related reporting indiscretions Creative Cash Flow Reporting and Analysis capitalizes on current concerns with misleading financial reporting on misleading financial reporting. It identifies the common steps used to yield misleading cash flow amounts, demonstrates how to adjust the cash flow statement for more effective analysis, and how to use adjusted operating cash flow to uncover earnings that have been misreported using aggressive or fraudulent accounting practices. Charles W. Mulford, PhD, CPA (Atlanta, GA), is the coauthor of three books, including the bestselling The Financial Numbers Game: Identifying Creative Accounting Practices. Eugene E. Comiskey, PhD, CPA, CMA (Atlanta, GA), is the coauthor of the bestselling The Financial Numbers Game: Identifying Creative Accounting Practices.

Download or read book The Effect of Auditor Industry Specialization and Board Independence on the Cash Flow Reporting Classification Choices Under IFRS written by Shuling Chiang and published by . This book was released on 2020 with total page 37 pages. Available in PDF, EPUB and Kindle. Book excerpt: This study explores the relationship between audit partner and firm industry specialization and board of director independence on the one hand and the decision by Taiwanese firms to take advantage of IFRS flexibility concerning reporting interest income and expense, and dividends received in the operating cash flow section of the statement of cash flows on the other. A sample of 1,227 Taiwanese firms were drawn for fiscal year 2013, the year that Taiwan switched from using its GAAP to using IFRS principles. Of these, 354 changed their cash flow reporting classifications. We examine the interaction effect of board independence and auditor industry specialization at both partner-level and firm-level on the cash flow reporting classification choices under IFRS. The results show there is a substitute relationship between board independence and partner-level industry specialization on the change in cash flow reporting classification, but a complementary relationship between board independence and firm-level auditor specialization. Further, both partner-level and firm-level auditor industry specialization have a complementary relationship with board independence in not changing a firm's interest expense paid reported in operating activities to financing activities.

Download or read book Assessing a Firm s Performance Under IFRS written by Maria Dimitriou and published by . This book was released on 2020 with total page 22 pages. Available in PDF, EPUB and Kindle. Book excerpt: The conversion of accounting standards from Greek Generally Accepted Accounting Principles (GAAP) to International Financial Reporting Standards (IFRS) raises the issue of the firm's reported performance. As far as the reported performance is concerned, the statement of cash flows is an additional regulation for Greek GAAP in accordance with IFRS. Therefore, in this paper, we put special emphasis on standards IFRS 7, the statement of cash flows, and the usefulness of this standard in assessing a firm's reported performance. In this paper, we present the process of assessing a firm's statement of cash flows or to adjust its ability to generate and grow earnings and cash flow. Prior to undertaking any analysis appropriate to the above purpose, we introduce the concepts of the adoption of IFRS in Greece, and then we explore the context of IFRS 7 as the aim, use, and construction of the cash flow statement (classification and presentation) but also the accounting handling of it. It may additionally be necessary to use tools and techniques which facilitate the assessment of the firm's financial and operational data. Concerning that, we adjust the phase of a firm's life cycle but also the amounts associated with the statement of cash flows by creating common size analysis from it and calculating the free cash flow as well as the ratios suggested by IFRS7. However, in order to achieve the paper's purpose, we present the case of Coca Cola Hellenic Bottling Company, including real reported corporate data, for educational purposes only. For well-supported conclusions, the application of a firm's assessment is enhanced by using five years of data. At every stage of assessment, the paper reports the results of the analysis and highlights the most important aspects of the analysis. Finally, in summary, adjusting a firm's statement of cash flows gives a complete picture of the firm's financial condition. It shows the quality of earnings, liquidity, and flexibility. It is apparent that IFRS 7 improves the relevance, and thereby, the quality, or at least some reported numbers.

Download or read book Integrated Reporting written by Samuel O. Idowu and published by Springer. This book was released on 2019-01-04 with total page 405 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book critically examines the implementation and adoption of integrated reporting (IR) in organizations and corporations. A relatively new area of policy and practice, IR has rapidly gained considerable prominence since the formation of the International Integrated Reporting Committee in 2010. The book analyzes the outcomes and benefits as well as the shortfalls of integrated reporting. It offers an introduction to the foundations of IR and a comprehensive overview of its use through a number of detailed case studies. Lastly, it discusses the outlook for further developments in sustainability accounting and reporting.

Download or read book Corporate Financial Distress and Bankruptcy written by Edward I. Altman and published by John Wiley & Sons. This book was released on 2010-03-11 with total page 314 pages. Available in PDF, EPUB and Kindle. Book excerpt: A comprehensive look at the enormous growth and evolution of distressed debt, corporate bankruptcy, and credit risk default This Third Edition of the most authoritative finance book on the topic updates and expands its discussion of corporate distress and bankruptcy, as well as the related markets dealing with high-yield and distressed debt, and offers state-of-the-art analysis and research on the costs of bankruptcy, credit default prediction, the post-emergence period performance of bankrupt firms, and more.

Download or read book Damodaran on Valuation written by Aswath Damodaran and published by John Wiley & Sons. This book was released on 2016-02-08 with total page 698 pages. Available in PDF, EPUB and Kindle. Book excerpt: "Aswath Damodaran is simply the best valuation teacher around. If you are interested in the theory or practice of valuation, you should have Damodaran on Valuation on your bookshelf. You can bet that I do." -- Michael J. Mauboussin, Chief Investment Strategist, Legg Mason Capital Management and author of More Than You Know: Finding Financial Wisdom in Unconventional Places In order to be a successful CEO, corporate strategist, or analyst, understanding the valuation process is a necessity. The second edition of Damodaran on Valuation stands out as the most reliable book for answering many of today?s critical valuation questions. Completely revised and updated, this edition is the ideal book on valuation for CEOs and corporate strategists. You'll gain an understanding of the vitality of today?s valuation models and develop the acumen needed for the most complex and subtle valuation scenarios you will face.

Download or read book International Financial Statement Analysis written by Thomas R. Robinson and published by John Wiley & Sons. This book was released on 2015-02-10 with total page 1072 pages. Available in PDF, EPUB and Kindle. Book excerpt: Better analysis for more accurate international financial valuation International Financial Statement Analysis provides the most up-to-date detail for the successful assessment of company performance and financial position regardless of country of origin. The seasoned experts at the CFA Institute offer readers a rich, clear reference, covering all aspects from financial reporting mechanics and standards to understanding income and balance sheets. Comprehensive guidance toward effective analysis techniques helps readers make real-world use of the knowledge presented, with this new third edition containing the most current standards and methods for the post-crisis world. Coverage includes the complete statement analysis process, plus information on income tax accounting, employee compensation, and the impact of foreign exchange rates on the statements of multinational corporations. Financial statement analysis gives investment professionals important insights into the true financial condition of a company. With it, realistic valuations can be made for investment, lending, or merger and acquisition purposes. The process is becoming increasingly complex, but this book helps readers deal with the practical challenges that arise at the international level. Understand the accounting mechanics behind financial reporting Discover the differences between statements from around the world Learn how each financial statement element affects securities valuation Master analysis for clues into operations and risk characteristics Amid an uncertain global economic climate, in today's volatile international markets, the ability to effectively evaluate financial statements is a critical skill. Standards and conditions are continuously evolving, and investment professionals need a strong, up-to-date resource for the latest rules and best practices. International Financial Statement Analysis provides this and more, with clarity and expert advice.

Download or read book Statement of Cash Flows Preparation Presentation and Use written by Tom Klammer and published by John Wiley & Sons. This book was released on 2018-03-02 with total page 279 pages. Available in PDF, EPUB and Kindle. Book excerpt: Disposed to numerous challenges and shortcomings, a cash flow statement is one of the most important financial statements for business. This book introduces the accountant to, and helps to boil down, the intricacies of the overall cash flow statement and its three major sections. Readers will review options for statement of cash flows preparation and presentation and methods to improve cash flow analysis. They will also explore the requirements of the statement of cash flows guidance and related standards, and learn how to make appropriate classifications of transactions and events. This book includes new changes resulting from FASB ASU No. 2016-15, Statement of Cash Flows (Topic 230), Classification of Certain Cash Receipts and Cash Payments (a consensus of the Emerging Issues Task Force), and FASB ASU No. 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash (a consensus of the FASB Emerging Issues Task Force). This book will help accounants to: Recall the fundamental cash flow reporting requirements. Recall how to prepare a statement of cash flows using both the direct and indirect method of presenting operating information. Identify when investing and financing cash flows can be reported net. Identify cash flow transactions as operating, investing, or financing. Indicate how to present and disclose significant transactions that have no direct cash flow effect. Recall how to report selected operating items such as interest, taxes, and receivables.

Download or read book Wiley IFRS 2008 written by Barry J. Epstein and published by John Wiley & Sons. This book was released on 2008-03-28 with total page 1178 pages. Available in PDF, EPUB and Kindle. Book excerpt: The one indispensable guide to IFRS compliance Wiley IFRS 2008 is the comprehensive source for guidance in applying IFRS to complex, real-world fact situations, and is equally valuable for preparers, auditors, and users of financial reports. To facilitate the reader's understanding, the book includes both examples created to explain particular IFRS requirements and selections from actual published financial statements, which have been copiously provided throughout, illustrating all key concepts. Barry J. Epstein (Chicago, IL) is a partner with Russell Novak & Company, LLP, where he specializes in technical and litigation consultation on U.S. and international accounting and auditing matters and corporate governance. Eva K. Jermakowicz, PhD, CPA (Nashville, TN) is a university professor and a leading consultant to international organizations and businesses. She is a frequent speaker at international venues and has 25 years of teaching experience.

Download or read book IFRS 6 written by International Accounting Standards Board and published by . This book was released on 2004 with total page 16 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Wiley Study Guide for 2015 Level I CFA Exam Complete Set written by Wiley and published by John Wiley & Sons. This book was released on 2015-01-21 with total page 1328 pages. Available in PDF, EPUB and Kindle. Book excerpt: The Wiley Study Guides for the Level 1 CFA exam are proven to help candidates understand, retain, and master the CFA Program Curriculum, complete with color-coded Study Guides and coverage of every Learning Outcome Statement on the exam. With over 1,000 pages of distilled knowledge from our staff of CFA charterholders and instructors, these books are a highly effective and proven study aid filled with exam tips, fundamental concepts, and in-depth examples. Our authors have used their years of personal teaching experience with students from a variety of backgrounds to develop study guides that improve the study experience of CFA Level I candidates and include practical and helpful tips and test-taking advice though-out the text. The color-coding feature, which makes it easier for you to follow cases and examples that make references to graphs and sets of financial statements. Most subjects, especially Economics, Portfolio Management and Fixed Income use plenty of figures and diagrams to illustrate important concepts. Our study guides include all those figures and additional commentary to make the material easily understandable.