Accounting & Finance Series
Understanding Cash Flow Statements
23 June 2009, 9am to 5pm (7 CPE Hours - category as per Public Accountants Competency Map A1)
Providing you with the knowledge and skills to interpret and prepare cash flow statements
The success, growth and survival of every reporting entity depends on its ability to generate or otherwise obtain cash.
Cash flow is a concept that everyone understands and with which they can identify. Reported profit is important to users of
financial statements, but so too is the cash flow generating potential of an enterprise. What enables an entity to survive is the
tangible resource of cash not profit, which is merely one indicator of financial performance. A cash flow statement (CFS) is
important to external users, and should be of significant importance internally as well.
Hence the importance of understanding the difference between, and the numbers behind, cash and profit, how and when to
create a CFS, and what is represents.
Key Benefits of Attending
This workshop has been developed to transfer the relevant skills for understanding, preparing and interpreting a cash
flow statement. With these skills, participants will also be in a better position to manage and make decisions affecting a
company’s cash flow.
By the end of this workshop, participants will:
• Understand the relationship between the P&L, Balance Sheet and CFS
• Appreciate the importance of cash and the uses and the importance of the CFS
• Know when a company must produce a CFS under FRS 7
• Understand the structure of a CFS in accordance with FRS 7
• Be aware of the differences between the direct and indirect methods of presenting a CFS
• Be able to produce a simple CFS using the indirect method
• Be aware of the disclosures required for CFS
• Understand how to produce a consolidated cash flow statement
• Be aware of the international differences in the calculation and disclosures of the CFS
• Have had the opportunity to discuss issues and concer