- #Advanced financial reporting cashflows drivers#
- #Advanced financial reporting cashflows professional#
Cashflows from investing activities are important because they represent the extent to which expenditures are made to generate future income and cashflows. They are a key indicator of the extent to which the entity's operations have generated sufficient cashflows to repay loans, maintain operating capability, pay dividends and make new investments without recourse to external sources of financing. ClassificationĬashflows are classified as relating to operating, investing and financing activities in a manner that is most suited to the nature of the business.Ĭashflows from operating activities are primarily derived from the main revenue activities of the entity and generally result from the transactions and other events that determine profit or loss. Cashflow information provides an insight into an entity's ability to generate cash and its needs to utilise these cashflows. The cashflow statement is an integral part of an entity's financial report for each period for which a financial report is presented. IAS 7, Statement of Cash Flows, is the standard that prescribes the presentation of a statement of cashflow disclosing information about the historical changes in cash and cash equivalents of an entity over the reporting period. We'd suggest that you use this as a guide when allocating yourself CPD units. One hour of learning equates to one unit of CPD. Studying this technical article and answering the related questions can count towards your verifiable CPD if you are following the unit route to CPD and the content is relevant to your learning and development needs.
This article was first published in the February 2010 edition of Accounting and Business magazine.
#Advanced financial reporting cashflows professional#
#Advanced financial reporting cashflows drivers#
This course provides students with the tools to understand valuation principles, coupled with the depth of accounting necessary to understand the drivers of that valuation-all using the rigor of Certified Financial Analyst (CFA) materials. At its most macro level, it drives the policy of governments.