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ACCA F3 Statement of Cash Flows Example 2, The direct method
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What happens if revaluation has gone downward like 250 to 220 how would you treat in acquisition
You won’t get downward revaluations in Paper FA (not until Paper FR) 馃檪
Pls sir, why did u less profit on sales of non current asset from depreciation?
I didn’t!
I subtracted it from the profit in order to get the ‘cash’ profit (the profit figure at the moment includes the profit on sale, which is a book profit and not cash).
sir i dont understand the direct method in other payments how you calculate the expense 6000 and add this plz tell me
Have you watched the lecture on the direct method, because I do explain this in the lecture.
great lectures but why are these lectures not downloadable. just only the note .
It is the only way that we can keep this website free of charge.
Dear Mr. Moffat
I still concern about some points related to preparing cash flow statement, but i do not know if they are correct. Kindly help explain them for me.
effect on profit effect on cash adjustment on
cash flow stmt
——— ———- ————
1. allowance for rcvbl decrease no no need adjustment as
bad debs (as those items
already adjusted in increase/
decrease in receivable)
2. bad debts subsequently
paid increase increase no need adjustment
3. accruals and provision decrease no add back to profit
4. prepayment no decrease deduct from profit
(however, In the text book, cash advance to other parties is treated as investing activities. If prepayment made to suppliers is also treated as investing activities)
Thanks a lot for your time!
Dear Sir
(pls ignore the previous comment as it is not well presented, I rewrite as follows)
I still concern about some points related to preparing cash flow statement, but i do not know if they are correct. Kindly help explain them for me.
1. allowance for rcvbl: decrease in profit, NO effect on cash–> no need adjustment as bad debts (as those items already adjusted in increase/ decrease in receivable)
2. bad debts subsequently paid: increase in profit, increase in cash –> no need adjustment
3. accruals and provision: decrease in profit, no effect on cash –> add back to profit
4. prepayment: no effect on profit, decrease in cash –> deduct from profit
(however, In the text book, cash advance to other parties is treated as investing activities. If prepayment made to suppliers is also treated as investing activities)
Thanks a lot for your time!
You must ask this sort of question in the Ask the Tutor Forum – not as a comment on a lecture.
Sorry Sir, I will make post this question in The Ask of Turor Forum. Look forward to your reply. Thank you very much for your time!
Hi John,
Did proceeds from disposal of non current assets is at cash generate from operation? or should be at financial investment rite?
Hi John,
Did proceeds from disposal of non current assets is at cash generate from operation? or should be at cash flow from investing activities rite?ignore previous post
The proceeds from the sale are cash flows from investing activities.
(But the profit or loss on sale needs adjusting for in arriving at the cash flow from operations)
thank you John. Appreciate . =)
You are welcome 馃檪