III-C/F-4

Question 1

IFRS and GAAP

1. 推荐用哪种C/F计算法？
2. GAAP有什么特别规定？
3. 现行较多用的是哪种计算法？

Answer 1

1. 推荐direct method (both IFRS & GAAP)
2. use direct method, must reconciliate using indirect method as well
3. 更多用indirect method(成本考量)

Question 2

GAAP

CFO

in4 + out 5

Answer 2

Question 3

GAAP

CFI

in3+out3

Answer 3

Question 4

GAAP

CFF

in2+out3

Answer 4

Question 5

特例：

bank overdraft

note payable

Answer 5

• GAAP: CFF, IFRS: cash equivalents
• CFF

Question 6

non-cash activities

where should be presented?

Answer 6

not in CF statement,

but must be disclosed seperately in the footnotes or a supplymental schedule

Question 7

CFO calculation

【indirect method】

3步

Answer 7

N.I.

調整non-cash in/out: Depreciation, Amortization, Impairment

調整non-operating in/out: Fixed assets, intangible asset處置

調整B/S科目：ΔA/R, ΔInventory, ΔA/P

Question 8

CFO calculation

【Direct method】

5步

Answer 8

【+】cash received from customer: net REV - ΔA/R + ΔUn/rev

【-】cash paid to supplier: ΔInv + COGS(扣除折舊) - ΔA/P

【-】cash paid to employees: wage expense - Δ wage payable

【-】cash paid for other operating expenses: other operating expenses + Δprepaid expenses - Δaccrued liabilities

【-】interest paid: interest expense - Δ interest payable

【-】tax paid: tax expense - Δtax payable - ΔDTL + ΔDTA

Question 9

CFI calculation 两个公式

ΔBV

gain or loss

Answer 9

ΔBV=purchase【-】 - disposal BV - depreciation

gain/loss = proceeds received【+】 - disposal BV

Question 10

CFF calculation 3个公式

dividend paid

Ending R/E

proceeds from issuing stocks

Answer 10

div paid = div declared - Δdiv payable

Ending R/E = Begin R/E + NI - div declared

= Δcommon stock + Δadditional paid-in capital-common stock

Question 11

C/S common-size analysis

Answer 11

• each inflow as % of total inflow
• each outflow as % of total outflow

or:

• each flow as % of net revenue

Question 12

Free Cash Flow to Firm [FCFF]

Free Cash Flow to Equity [FCFE]

equation 【简/繁】

Answer 12

注意net capital expenditure 的概念

Question 13

Under IFRS,

FCFF/FCFE

调整3

Answer 13

1. Int Paid: 归类为CFO加回，CFF不加
2. Div Paid: 归类为CFO加回，CFF不加
3. Int/Div received: 归类为CFO无变化，CFI，加回

Question 14

CF ratios - PERFORMANCE

Cash Flow to Revenue

Cash Return on Assets

Cash Return on Equity

Cash to income

Cash flow per share

Answer 14

CFO/Net Rev

CFO/AVG total assets

CFO/AVG equity

CFO/Operating income

(CFO-preferred div)/outstanding stocks

Question 15

CF ratios- COVERAGE

debt coverage

interest coverage

reinvestment

debt payment

div payment

invest/financing

Answer 15

CFO/total debt

(CFO+Int paid+tax paid)/int paid

CFO/CF- for long term asset

CFO/CF- for long term debt repay

CFO/div paid

CFO/CF- for investing+financing

Question 16

CF from taxes on income

must be seperately disclosed under

Answer 16

both GAAP and IFRS