CAPITULO 23 INTERMEDIA

CAPITULO 23 INTERMEDIA - Chapter 23 Statement of Cash Flows...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
CHAPTER 23 STATEMENT OF CASH FLOWS This IFRS Supplement provides expanded discussions of accounting guidance under International Financial Reporting Standards (IFRS) for the topics in Intermediate Accounting. The discussions are organized according to the chapters in Intermediate Accounting (13 th or 14 th Editions) and therefore can be used to supplement the U.S. GAAP requirements as presented in the textbook. Assignment material is provided for each supplement chapter, which can be used to assess and reinforce student understanding of IFRS. DISCLOSURES Significant Non-Cash Transactions Because the statement of cash flows reports only the effects of operating, investing, and financing activities in terms of cash flows, it omits some significant non-cash transac- tions and other events that are investing or financing activities. Among the more com- mon of these non-cash transactions that a company should report or disclose in some manner are the following. 1. Acquisition of assets by assuming liabilities (including finance lease obligations) or by issuing equity securities. 2. Exchanges of non-monetary assets. 3. Refinancing of long-term debt. 4. Conversion of debt or preference shares to ordinary shares. 5. Issuance of equity securities to retire debt. Investing and financing transactions that do not require the use of cash are ex- cluded from the statement of cash flows. [1] If material in amount, these disclosures may be either narrative or summarized in a separate schedule. This schedule may appear in a separate note or supplementary schedule to the financial statements. 1 Illustration 23-1 shows the presentation of these significant non-cash transactions or other events in a separate schedule in the notes to the financial statements. Companies do not generally report certain other significant non-cash transactions or other events in conjunction with the statement of cash flows. Examples of these types of transactions are share dividends , share splits , and restrictions on retained earnings . Companies generally report these items, neither financing nor investing activities, in conjunction with the statement of changes in equity or schedules and notes pertaining to changes in equity accounts. 1 Some non-cash investing and financing activities are part cash and part non-cash. Companies should report only the cash portion on the statement of cash flows. The non-cash component should be reported in a separate note. Note G: Significant non-cash transactions. During the year, the company engaged in the following significant non-cash investing and financing transactions: Issued 250,000 ordinary shares to purchase land and building $1,750,000 Exchanged land in Steadfast, New York, for land in Bedford, Pennsylvania $2,000,000 Converted 12% bonds to 50,000 ordinary shares $ 500,000 ILLUSTRATION 23-1 Note Presentation of Non-Cash Investing and Financing Activities U.S. GAAP PERSPECTIVE IFRS requires that non-cash investing and financing activities be excluded from
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 6

CAPITULO 23 INTERMEDIA - Chapter 23 Statement of Cash Flows...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online