Category Archives: STATEMENT OF CHANGES IN FINANCIAL POSITION

SUMMARY

SUMMARY  > The SCFP, as a statement of financial analysis, demonstrates changes in funds (net working capital. cash and total resources) over a period of time, generally between two consecutive years. > The SCFP, based on net working capital concept, is more popularly known as funds flow statement. According to this basis, only those transactions which bring about changes in net working capital are in

Importance and Usefulness

Importance and Usefulness The SCFP is used for two principal purposes: (i) as a means of analyzing what has happened in the past and (ii) as a mean of planning and decision making for future. As a tool of historical analysis, the statement highlights not only the magnitude and direction of change in the net working capital during the period of two-successive balance sheets but also the factors responsible for

STATEMENT OF CHANGES IN FINANCIAL POSITION (SCFP): TOTAL RESOURCE BASIS (Table)

SCFP Based on Total Resources of Electronics Ltd for the Current Year TABLE STATEMENT OF CHANGES IN FINANCIAL POSITION (SCFP): TOTAL RESOURCE BASIS   Finance-Assignments.comInstructions Feel free to send us an inquiry, we reply back real quick. Or directly email us at order@finance-assignments.comName *Email *Phone *Requirements/ Instructions File Upload File Upload File Upload  VerificationPlease

STATEMENT OF CHANGES IN FINANCIAL POSITION (SCFP): TOTAL RESOURCE BASIS

STATEMENT OF CHANGES IN FINANCIAL POSITION  (SCFP): TOTAL RESOURCE BASIS The SCFP statements based on working capital as well as cash are incomplete and inadequate to the extent that they omit some major financial and investment activities like issue of equity shares or debentures for purchase of building or plant and machinery, conversion of debentures into shares, issue of bonus shares and the like. Such i

Direct Method Cash Flow Statement of Electronics Limited for the Current Year (Tables)

Direct Method Cash Flow Statement of Electronics Limited for the Current Year TABLES Direct Method Cash Flow Statement of Electronics Limited for the Current Year Working Notes Direct Method Cash Flow Statement of Electronics Limited for the Current Year Indirect Method Cash Flow Statement of Electronics Limited for the current year Direct Method Cash Flow Statement of Electronics Limited for the Current Year The s

Other Disclosures

Other Disclosures An enterprise should disclose, together with a commentary by management, the amount of significant cash and cash-equivalent balances held by the enterprise that are not available for use by it. Examples include cash and cash-equivalent balances held by a branch of the enterprise that operates in a country where exchange controls or other legal restrictions apply as a result of which the balance

Non Cash Transactions

Non-Cash Transactions Investing and financing transactions that do not require the use of cash or cash-equivalents should be excluded from a cash flow statement. Such transactions should be disclosed elsewhere in the financial statements in a way that provides all the relevant information about these investing and financing activities. Examples of non-cash transactions are: (i) the acquisition of assets an ent

Acquisitions and Disposals of Subsidiaries and Other Business Units

Acquisitions and Disposals of Subsidiaries and Other Business Units The aggregate cash flows arising from acquisitions and from disposals of subsidiaries or other business units should be presented separately and classified as investing activities. An enterprise should disposals in aggregate, in respect of both acquisition and disposal of subsidiaries or other business units during the period each of the follow

Investments in Subsidiaries Associates and Joint Ventures

Investments in Subsidiaries Associates and Joint Ventures Enterprises having investments in subsidiaries, associates and joint ventures are required to report in the CFS the cash flows between themselves and the invested/joint venture, for example, cash flows relating to dividends and advances. Finance-Assignments.comInstructions Feel free to send us an inquiry, we reply back real quick. Or directly email u

Deferred Taxes

Deferred Taxes There can be differences in the amount of taxes payable, determined on the basis of financial accounting vis-a-vis tax accounting. One such item which an cause this distortion relates to the treatment of depreciation. For instance, for income-tax reporting, the machine may be subject to higher rate of depredation compared to financial accounting. This lowers the taxes payable in the early years o