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14 Cards in this Set
- Front
- Back
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What are the sections of the cash flow statement and in what order are they in? |
Operating, Investing, Financing |
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How is cash balance shown on statement? |
Increase/Decrease In Cash 10000 Cash at Beginning of Year 20000 Cash at End of Year 30000 |
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Adjustments and what they do to cash flow: |
Depreciation (Added) Amortization (Added) Loss (Added) Gain (Subtracted) |
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Changes in Current Assets and Liabilities |
Increase in CA---> subtract Decrease in CA---> add
Increase in CL---> add Decrease in CL--->subtract |
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Horizontal Analysis |
Percentage analysis of increase and decreases in related items in comparative financial statements
Difference between Beg/End year ------------------------------------------------- Base year Amount |
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Vertical Analysis |
Percentage analysis of the relationship of each component in a financial statement to a total within the statement
Current Assets ---------------------- Total Assets
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IFRS |
International Financial Reporting Standards |
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GAAP |
Generally Accepted Accounting Principles |
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IASB |
International Accounting Standards Board |
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Major Countries that use IFRS |
-European Union -Canada -Mexico -Australia -Russia -South Africa
-NOT U.S.
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Rules Based Vs. Principles Based |
Rules Based (GAAP)-specific rules, less interpretation
Principles Based (IFRS)-easier for different countries to follow-designed to meet the needs of different countries |
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Different Terms: |
GAAP Vs. IFRS Balance Sheet=Statement of Financial Position Statement of Stockholders Equity=Statement of Changes in Equity Payable=Provision Stockholders Equity=Capital and Reserves Net Income=Profit
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Fixed Assets |
GAAP/U.S.: May not be revalued to fair value (remain at cost)
IFRS: May be revalued to fair value |
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Inventory |
GAAP/U.S.: lower of cost or market (cannot reverse write-down)
IFRS: fair value (can revalue and reverse write-down) |
