Chapter 23: Statement of Cash Flows

1
Chapter 23 Statement of Cash Flows
Intermediate Accounting, 11th ed. Kieso,
Weygandt, and Warfield
Prepared by ROVILA EL MAGHVIROH STIE Perbanas
Surabaya
2
Chapter 23 Statement of Cash Flows
After studying this chapter, you should be able
to

1. Menguraikan tujuan laporan arus kas.
2. Identifikasi klasifikasi arus kas.
3. Membedakan laba bersih dg arus kas bersih dari
   kegiatan operasi.
4. Membandingkan metode langsung dan tidak langsung
   utk menghitung arus kas bersih dari kegiatan
   operasi.

3
Chapter 23 Statement of Cash Flows

1. Menentukan arus kas bersih dari kegiatan
   investasi dan pembiayaan.
2. Menyiapkan Laporan Arus kas.
3. Mengidentifikasi sumber informasi utk Laporan
   arus kas.
4. Mengidentifikasi masalah khusus dlm menyiapkan
   laporan arus kas.
5. Menjelaskan penggunaan neraca lajur dlm
   menyiapkan laporan arus kas.

4
Manfaat of the Statement of Cash Flows

• Membantu para investor, kreditor, dan pihak
  lainnya dlm menilai hal2 sbb
• Kemampuan entitas utk menghasilkan arus kas
  dimasa depan.
• Kemampuan entitas utk membayar dividen dan
  memenuhi kewajibannya.
• Penyebab perbedaan antara laba bersih dan arus
  kas bersih dari kegiatan operasi.
• Transaksi investasi dan pembiayaan yg melibatkan
  kas dan non kas selama suatu periode.

5
The Cash Flow Statement

• The cash flow statement provides information
  about
• the cash receipts (cash inflows), and
• uses of cash (cash outflows) during the period
• Inflows and outflows are reported for
• operating activities,
• investing activities, and
• financing activities during the period

6
Statement of Cash Flows Concept
Cash Pool
7
Preparing a Statement of Cash Flows

• There are two methods of preparing the statement
  of cash flows
• the indirect method and
• the direct method
• The indirect method derives cash flows from
  accrual basis statements.
• The direct method determines cash flows directly
  for each source or use of cash.

8
Statement of Cash Flows Indirect Method Concept
Earned Revenues
Operating cash flow
Expenses Incurred
9
The Statement of Cash Flows Indirect Method
10
Direct Method Operating Activities
Inflows
Outflows

• From sales of goods or services
• From returns on loans (interest) and returns on
  equity securities (dividends)

• To suppliers for inventory
• To employees for services
• To government for taxes
• To lenders for interest
• To others for expenses

11
Investing and Financing Activities

• For the direct and indirect methods the sections
  reporting investing andfinancing activities are
  the same.
• The net inflows or outflows for each section
  (under the two methods) are identical.
• The operating activities are reported differently.

12
Format of the Statement of Cash Flows Indirect
Method
Cash flows from operating activities Net
Income XXX Adjustments (to arrive at
cash flow from operations) XX (List of
individual inflows and outflows) Net cash flow
from operating activities XXX
Cash flows from investing activities (List of
individual inflows and outflows) XX Net
cash flow from investing activities XXX
Cash flows from financing activities (List of
individual inflows and outflows) XX Net
cash flow from financing activities XXX
13
Major Classes of Cash Receipts and Payments
14
Formula to Compute Cash Receipts from Customers
15
Formula to Compute Cash Payments for Operating
Expenses
16
Indirect Method Special Items

• Note the following adjustments to net income in
  deriving operating cash flow
• Loss on sale of assets is added to net income
• Gain on sale of assets is deducted from net
  income
• Discount on bonds payable (as amortized) is added
  to net income
• Premium on bonds payable (as amortized) is
  deducted from net income

17
Format of the Statement of Cash Flows Direct
Method
Cash flows from operating activities Cash
receipts (individually) Inflows XXX Cash
payments to suppliers (separately) outflows
( XXX) Net cash flow from operating
activities XXX
Cash flows from investing activities (List of
individual inflows and outflows) XX Net
cash flow from investing activities XXX
Cash flows from financing activities (List of
individual inflows and outflows) XX Net
cash flow from financing activities XXX
18
Direct Method Concept
Cash flow from operations
less
equals
19
Cash Flow Statement Direct Method
Cash receipts from customers Revenue from
credit sales Decrease in A/Rec balances
- Increase in A/Rec balances
20
Cash Flow Statement Direct Method
Cash payments to suppliers Cost of goods sold
Increase in inventory - Decrease in
inventory Decrease in accounts
payable - Increase in accounts payable
21
Cash Flow Statement Direct Method
Cash payments for operating and other
expenses Operating expenses Increase in
prepaid expenses - Decrease in prepaid
expenses Decrease in accrued
expenses payable - Increase in accrued
expenses payable
22
Reporting Significant Non-Cash Transactions

• Transactions not involving cash inflows or cash
  outflows are non-cash transactions.
• They are not reported in the body of the cash
  flow statement.
• If material, they are reported as notes to the
  statement or in a supplementary schedule to the
  financial statements.
• Example Issue of bonds (payable) for purchase of
  land.

23
(No Transcript)
24
(No Transcript)
25
(No Transcript)
26
(No Transcript)
27
(No Transcript)