Focus Point Holding Berhad Cash Flow Statements

Recognition is the process for formally recording or incorporating an item in the financial statements of an entity as an asset, liability, revenue, expense, or the like. Recognition consist both initial recognition of an item and the subsequent changes in or the removal of a previously recognized item. The criteria in this statement is derived from the previous concept statements 2 and statement 3. For an item to be recognized, it should meet four fundamental recognition criteria. The four fundamental criteria are definition, measurability, relevance, and reliability. All four criteria are subject to a cost benefit constraint and a materiality threshold. The expected benefits from recognizing an item should justify the perceived cost of providing and using the information. Furthermore, an item and the information about it do not need to be recognized in financial statements if the item is not large enough to be material and the aggregate of individually immaterial items is not large enough to material to those financial statements. It is noted that the fundamental criteria apply to all recognition descisions.

Unlike fixed assets or inventories, it does not produce goods for sale nor does it add anything to the concern. Cash management is also important because it is difficult to predict cash flows accurately, particularly the inflows, and there is no perfect coincidence between the inflows and outflows of cash. During some periods, cash outflows exceed inflows, because payments for taxes, dividends or seasonal inventory build up. At other times, cash inflows will be more than cash payments as there may be large cash sales and debtors may be realized in large sums promptly. Any shortage of cash will hamper the operations of a concern and excess of it will be unproductive. Further cash management is significant because cash constitutes the smallest portion of the total current assets, yet management’s considerable time is devoted in managing

‘Cash and cash equivalents’ include certain short-term investments and, in some cases, bank overdrafts. Like IFRS, ‘cash and cash equivalents’ include certain shortterm investments, although not necessarily the same short-term investments as under IFRS. Unlike IFRS, bank overdrafts are considered a form of short-term financing, with changes therein classified as financing activities. The statement of cash flows presents cash flows during the period, classified by operating, investing and financing activities. Like IFRS, the statement of cash flows presents cash flows during the period, classified by operating, investing and financing activities. The separate components of a single transaction are classified as operating, investing or financing. Unlike IFRS, cash receipts and payments with attributes of more than one class of cash flows are classified based on the predominant source of the cash flows unless the underlying transaction is accounted for as having different components. Cash flows from operating activities may be presented using either the direct method or the indirect method. If the direct method is used, then an entity presents a reconciliation of profit or loss to net cash flows from operating activities; however, in our experience practice varies regarding the measure of profit or loss used. Like IFRS, cash flows from operating activities may be presented using either the direct method or the indirect method. Like IFRS, if

Examples of significant noncash activities are: (1) issuance of stock for assets, (2) conversion of bonds into common stock, (3) issuance of bonds or notes for assets, and (4) noncash exchanges of property, plant, and equipment.

Understanding the finances of a company is important but knowing the significance of the financial statements is crucial to the operations as well. Reviewing the statement of financial position, operating statement and statement of cash flows serve as a guidance to management and executives on the day-to-day activities of an organization (Finkler et al., 2013). For example, the statement of financial position (balance sheet) shows the assets and

The cash flow statement of a company showcases how much money coming in to the business and out of business. A positive cash flow indicates a health business where more money coming in to business than going out of the business. There are three major component of cash flow statement which are operations, investing and financing activities. The balance sheet represents the financial position of the company for a specific date and provide company asset, liabilities and owner equity. The Income statement demonstrates how a company use its assets to generate income over a period of time. It explains the how the company generate revenue and what are their

Investments (equity, loan and advances) accounted for by the equity method while the investee has the activities in progress necessary to commence its

Company was investing for both the year and for business improvement they had only initial expense of $8185K in year 2008.

3. Store equipment of $44,000 was purchased by signing a short-term note payable. Also, a $150,000 telecommunications system was acquired by issuing 3,000 shares of preferred stock.

Feedback: Operating activities are not the only activities reported on the statement of cash flows. P2

FASB issues different types of exposure documentation to solicit input on its standards setting activities, includes discussion papers, exposure drafts, preliminary views and comment section. One of standards and rulings that being contemplated through pending exposure draft document of FASB is the proposed accounting standard update on Statement of Cash Flows (Topic 230) specifically on classification of certain cash receipts and cash payments which is a consensus of the FASB Emerging Issues Task Force. The stakeholders has stated there are diversity in the statement of cash flows on how certain cash receipts and cash payment are presented and categorized. This proposal of accounting standards update is to provide solution on eight specific

Charles Gibson said, said the “statement of cash flow has become one of the primary financial statements. …it gives managers, equity analyst, commercial lenders, and investment bankers a thorough explanation of the changes that occurred in the firm’s cash balances.” (2013, p. 393). On the cash flow statement both net cash provided by operating activities and net income are both listed. An explanation on the difference between the two is discussed below.

Investing activities shows cash flows for the purchase and sale of assets not generally held for

As investee's liabilities are not recorded on the company's balance sheet, there may be significant off-balance-sheet financing.

In order for the company to run smoothly, SIA’s stakeholder also must know the company’s performance by seeing through SIA Annual Report and their cash flow. A cash flow is also an important tool for the company to make a decision. This project will also provide an analysis of Singapore Airline’s cash flow statement whether they are in a surplus or deficit