About this Course

Cash flow information helps the users to assess an entity’s ability to generate cash and cash equivalents as well as useful to users in assessing and comparing the present value of the future cash flows of different entities. Information on historical cash flows is often used as basis for predicting cash flows in the future as to the amount, timing and certainty of such cash flows. It also enables users to examine the effect of price changes as well as the correlations between profitability and net cash flow. FRS 7 prescribes the technical requirement for the preparation and presentation of cash flow components in the cash flow statement as well as what constitute cash and cash equivalents. 

This workshop provides detail coverage on the requirement of FRS 7. The workshop uses simple examples to clarify the complicated procedures of cash flow preparation with the aim to enhance the preparer’s technical skill in preparing a cash flow statement. 

Programme Outline 

Understanding the technical requirements of FRS 7:

• Cash and cash equivalents
  
• Cash equivalent pledged to financial institutions
  
• Presenting and reporting operating, investing and financing activities
  
• Direct method Vs. indirect methods
  
• Reporting cash flows in net basis or gross basis
  
• Presentation of interest, dividend and taxation in the cash flow statement
  
• Identifying non-cash transactions – funds Vs. cash
  
• Handling cash flows of assets that are regularly held for rental and sale (incorporating FRS 105 improvement)
  

Mastering the techniques of preparing consolidated cash flow statements (incorporating FRS 27):

• Subsidiaries, associates and joint ventures
  
• Acquisition and disposal of subsidiaries and business units
  

Foreign currency cash flows (Incorporating FRS 21)

• Foreign currency transactions and balances in separate financial statements
  
• Treatment of realise and unrealise foreign currency cash flows
  
• Treatment of translation gain or loss in consolidation of foreign operations
  

Update on IASB’s Discussion Paper October 2008: Preliminary view on financial Statement Presentation

• Proposal to supersede IAS 7 into a new IFRS
  
• Examine the proposed new format
  
• Proposal to use direct method only
  
• Proposal to prepare reconciliation between statement of cash flows to statement of comprehensive income
  

Intended For

A Foundation to Intermediate level programme suitable for Practising Accountants, Non-Practising Accountants and Auditing Professionals.

Training Methodology

Lecture style, with Exercises/Case Studies

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