Statement of Cash Flows and Consolidated Statements.
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Statement of Cash Flows and Consolidated Statements
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Transcript of Statement of Cash Flows and Consolidated Statements.
![Page 1: Statement of Cash Flows and Consolidated Statements.](https://reader036.fdocuments.us/reader036/viewer/2022062518/56649e875503460f94b8ae26/html5/thumbnails/1.jpg)
Statement of Cash Flows and
Consolidated Statements
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Cash and Cash Equivalents
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Classification
Operating
Investing
Financing
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Direct vs. Indirect
Direct• report major
classes of receipts/payments
Indirect• reconcile net
income to net cash
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Consolidated Financial Statements
Corporation
Affiliate
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Consolidation Abuse
• Must consolidate “controlled” subsidiaries
• Definition of “control” has changed from quantitative to qualitative
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Elimination
• Parent’s “Investment in Subsidiary” account is replaced with the subsidiary’s assets and liabilities
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Development of Accounting PrinciplesGAAP = Generally Accepted Accounting Principles
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The Players
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Accounting vs. Auditing
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The Role of Congress