Question

list the reports a available for reporting cash flow

Answer 1

Complete details about Cash flow statement , Report under cash flow :

In current business scenario, Most important section to focus on Companies cash flow position . Cash flow is only area where any Investor can get to know complete movement of Cash in relates to operation , Investment and Financial matter . Operation flow disclose complete movement of Current asset and Liability . We normally captured - Increase / decrease in Current asset / liability and impact on Cash position . Cash flow from Operation will show Net profit and added back all exceptional , Non cash item ( depreciation , Amortization etc) + any abnormal gain / loss .

Cash flow will show Interest earned / Dividend received and corresponding payment matter .

Cash flow - Financial activities  will capture

1) Loan proceeds

2) Payment of Principal amount of Loan

3) any stock issuance ,

4 ) Capital Contribution received

5) Repayment of Finance Lease liability

6)Amount paid / received - utilization of Derivative account

7) Interest paid

8) Dividend paid

Cash flow - Investment activities  will capture

1) Purchase of Capital Asset

2) Sale of Capital Asset

3) Purchase / Sale of Non current Investment

4) Interest received

5) Dividend received from Joint venture /associates

6) Dividend received from Others

7) Acquisition / sales of Subsidiary

Cash flow - Operation activities  will capture

We used to consider following adjustment :

1) Depreciation / Amortization - Non cash item

2) Gain / loss on sales of Fixed asset + Non current Investment

3) any abnormal gain /loss

4)Gain/loss relates to Derivative financial Instrument ) Future , Option , Swap , forward etc)

5) Exchange gain /loss on foreign currency loan / swaps

6)Share of profit /loss from Joint venture

7) Profit / loss on sale of discontinue operation

8) adjusted net movement of Current account and adjusted with cash flow Operation .

9) Income tax paid

On the basis of all above step, we derived Closing cash position also disclose effect of exchange rate relates to foreign currency transaction .

Other than above Cash flow statement , company also maintain cash flow Report to track day to day activity .this is also called Cash cycle . This cycle maintain will help company to help " how much fund we need to keep " to run the business.

Company normally considered only cash transaction in this matter. Cash flow report Never considered Non cash item like depreciation , amortization etc. With help of above report , we can understand Month over Month cash position , This report consist of :

1) cash sales + cash borrow + Equity contribute + collection from Debtors + Interest or any other receipt

2) Deduct all expenses - daily/ Monthly expenses like salary , Interest on loan + Fixed liability + Proncipal amount of loan + Statutory liability etc .