Funds statement: why the focus has changed from working capital to cash flow
Article Abstract:
The incidence of financial stress has increased interest in cash flow information as shown in Statements of Changes in Financial Position (SCFP). The focus of the SCFP is changing from working capital to cash flow. A research project studies the question of whether these changes have improved financial statements. Definitions remain unclear, however, pending adoption of a Financial Accounting Standards Board (FASB) exposure draft on statements of cash flows. SCFP's traditionally had sources and uses of funds as the main divisions. Current formats mark funds three ways: operations, investments and financing. FASB may also require that all funds be defined in cash or cash equivalents. Working capital from operations is not equivalent to cash from operations. Preparers of financial statements can decide which alternatives in reporting format provide the most useful information.
Publication Name: FE: the Magazine for Financial Executives
Subject: Business
ISSN: 0883-7481
Year: 1987
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Some Current Accounting Problems
Article Abstract:
The implementation of CA 1981 has contributed to several accounting problems. One of the main changes is the introduction of rigid formats for balance sheet and profit and loss accounts. The problem frequently faced is the extent of adaptation of the formats. Another major change is the introduction of law of accounting principles and rules which are: concept of going concern to prepare financial statements, inclusion of profits that are realized in the Profit and Loss Account, disclosure of reasons for departing from any of the accounting principles, application of historical cost accounting to assets, inclusion of interest on capital borrowed to finance the production to production cost, valuation of stock of FIFO, LIFO, weighted average price or any similar method.
Publication Name: The Accountant
Subject: Business
ISSN: 0001-4710
Year: 1984
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Program Results Audits
Article Abstract:
The Air Force Audit Agency (AFAA) uses accounting standards according to the Comptroller Generals Standards for Audits of Government Activities from the Yellow Book of the General Accounting Office (GAO). These speak to issues of auditor independence due professional care, supervision and reporting chronology. They also address the complete compositional aspects of a government audit, which include records testing accuracy, management efficiency evaluation, and program finding impact assessments. Determination of a program results audit is highlighted. Common criteria must be used, by auditors and management in order to insure program effectiveness.
Publication Name: Air Force Comptroller
Subject: Business
ISSN: 0002-2365
Year: 1984
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