There is a renewed interest in the Statement of Cash Flows. In the past 10 years, over 30% of restated financial statements were due to errors in the Statement. The SEC has focused on it, Peer reviewers are noting problems, and the FASB has begun a project on it. This course focuses on where the problems are and where there is diversity in practice.
Learning Objectives
• To gain the ability to critically read a\the statement of cash flows
• To learn how to properly distinguish between operating, investing, and financing cash flows
• To learn the importance of disclosing non-cash transactions
Major Topics
• The format of the Statement of Cash Flows
• How to identify cash flows from accrual financial statements
• How to classify cash flows between operating, investing and financing
• Direct vs. Indirect methods
• Disclosure requirements
• Non-cash transactions.
