Workshop on Understanding Cash Flow Statements

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 it 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.

Workshop Objectives
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 concerns relating to the CFS

Workshop Outline
The need for a CFS
  • Importance of cash in delivering shareholder value
  • Importance of cash for liquidity and long-term survival
The structure of a CFS
  • When a company needs to prepare a CFS
  • Case study: Review of a company’s CFS
  • The direct & indirect method of producing a CFS
The mechanics of creating CFS
Preparing consolidated CFS
International differences in preparing a CFS and other issues needs

Who Should Attend
  • Finance staff of all levels who need to know how to understand the principles of creating and interpreting a cash flow statement
  • Internal and External Auditors who have to verify the appropriateness of the Cash Flow Statements
  • Financial Controllers who need to revise the principles of cash flow statements
Date & Time
13 December 2012
9.00 am to 5.00 pm

S$625 - Clients of PricewaterhouseCoopers/Alumni
S$685 - Public

All fees include 7% GST, lunch, refreshments and seminar kit.

More information about the seminar, including registration details, is available in the flyer > Download