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No. Only actual transactions of cash or cash equivalents would form part of the cash flow statement. The creation of provisions or reserves are an allocation of cash and not a payment (the company will retain ultimate control of the funds) however any payment of the provision will form part of the cash flow statement.
For example a company creates a provision in order to clean up after its mining operations
Company Starts mining in year x1 and will complete operations in x10
The Provision is formed in x1 and paid in x10 ( only in x10 will any amount relating to the provision be shown on the Cash Flow Statement whereas the provision will form part of the statement of financial position- balance sheet- from year x1)
What else can I help you with?
What is another name for cash flow of statement?
Another name of cash flow statement is fund flow statement.
What is cash-flow statement?
Cash flow statement is the statement which show the cash flow from operating, financing and investing activities.
Period expenses which do not affect the cash flow of the company should be excluded from the cash flow statement and how true is this statement?
Yes it is correct as cash flow statement only deals in cash so non cash items should be eliminated from cash flow statement.
Structure of cash flow statement?
structure of cash flow statement as follows:1
What statement reports Free cash flow?
Free cash flow is the sum of operating and investing cash flows, which are reported on the cash flow statement.
What is another name for the statement of cash flows?
Another name of cash flow statement is fund flow statement.
Do you include capital in cash flow statement?
yes changes in capital is shown in cash flow from financing activities in cash flow statement.
Features of Cash flow statement?
Sample cash flow statement as follows:1 - Cash flow from operating activitiesReceived from debtorsPayment to creditors2 - Cash flow from financing activitiesPurchase (sales) of asset3 - Cash flow from investing activitiesnew share capital introduced etc.
What is the difference between a proforma cash flow statement and a cash flow statement?
A cash flow statement is a financial statement that shows the changes in a company’s cash position over a given period. A cash flow projection is an analysis of how the company will make money in the future. The difference between these two statements is that the projection includes information about what will happen to a company's cash balance from now until then, whereas the statement only shows how much money has been made or spent during that time period.
Where do prepaid expenses go on the cash flow statement?
investing activities in cash flow statement
How in a society cash flow statement depriaciation be treated?
depreciation is not part of cash flow statement and in indirect method for cash flow it will be added back to cash flow from operating activities.
Define Cash Flow Statement?
cash flow statement is statement which shows company cash inflows and outflows from operating, investing and financing activities.
