Cash flow statements - what are the choices? The reporting of companies' cash flows could lead to more comparable information

Article Abstract:

The UK Accounting Standards Committee issued Exposure Draft (ED) 54, Cash Flow Statements on 26 Jul 89, shortly before it expired. ED 54 will require the reporting of cash flows. Financial reporting intends to help users make economic decisions about companies, and financial theory holds that users of financial statements will base their decisions on assessments of future cash flows. Thus, cash flow information will elucidate a corporation report more than a finds flow statements. ED 54 will replace Statement of Standard Accounting Practice 10, Statements of Source and Application of Funds, which many critics have criticized for its flexibility and lack of definitions. ED 54 will make cash flow statements general purpose financial statements and will lead to the generation of more comparable information for all reporting entities.

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Goodwill - are we really making progress? The unprecedented opposition to ED 47 proves that it is time for Government intervention

Article Abstract:

The UK Accounting Standards Committee's (ASC) Exposure Draft (ED) 47, Accounting for Goodwill, would require a ban on reserve accounting and require goodwill to be depreciated in accordance with the company law. ED 47 has met with vociferous opposition from preparers of corporate accounts and auditors, which will require Department of Trade and Industry (DTI) intervention. The DTI should issue a statutory instrument similar to ED 47 that will require preparers and auditors to offer useful information. ED 47 does not contain any theoretical justification for the determination of the amortization charge but merely contains a crude attempt to ensure that the charge is substantial.

Goodwill (Business)

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Proposed statement of standard accounting practice - exposure draft 55: Accounting for investments (issued July 1990)

Article Abstract:

The UK Accounting Standard's Committee's Proposed Statement of Standard Accounting Practice - Exposure Draft 55: Accounting for Investments (issued July 1990), is presented. In addition to articulating the need for an accounting standard, the Exposure Draft covers different investment areas, including the determination of the market value of readily marketable securities, transfers of investments between categories, and the recognition of investment income in the profit and loss account.

Investments

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