Cash flow statements

System
System Posts: 100,534 🤖 Admin 🤖
edited June 18 in AAT student discussion
I am really struggling with these !! - Does anyone else feel the same ?<BR>I've done all the questions in the Osbourne tutorial books <BR>but really got myself confused where to put things <BR>Does anyone know if in the exam your given a pro forma to give you a clue!!<BR>

Comments

  • System
    System Posts: 100,534 🤖 Admin 🤖
    Cash flow statements

    THEY GENERAL GIVE YOU BUT YOU WOULD HAVE TO KNOW WHAT TO USE. MOST TIMES THE CONTENTS GIVEN IS NOT RELEVANT.
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Cash flow statements

    Thanks - I guess I'll have to do more questions <BR>Practice, Practice and MORE Practice!!!
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Cash flow statements

    I feel the same, Nic. I have just started this unit and I feel that the cash flow statement is the worst part of the whole unit. I dont think the Osborne books are great either, their explanations are useless. I have found that with all of the exams I sat, that the books did not equip me with the necessary knowledge for them (hence failed 1 in December). This is particularly hard for me as I am a distance learning student.<BR><BR><BR><BR>
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Cash flow statements

    Glad to hear its not just me, however I am really sorry you've failed the exam<BR>I'm just re doing the questions (we are very quiet at work) and its still not really going in. I aren't distance learning but my tutor babbles on too much that I (and the rest of the class) lose interest in what he's taking about!! <BR>
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Cash flow statements

    <BR><BR>Although I did a cash flow statement every day on my last job, I found it hard to get to grips with this topic. In the end, I simply spent a few lunchhours trying to master this (while everyone else went out to have fun:-(). Putting in a couple of extra hours is worth the effort, because in the end the technique will sink in. Cash flow is always the same, which is true of most of the DFS paper. It is just a caseof learning steps one, two, three, four, five and six - it never varies! Practice, practice, practice is very true of DFS paper, in particular.<BR><BR>
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Cash flow statements

    There is a way to remember the order in which the cash flow statement is written. This is:<BR><BR>NET OPERATING CASH FLOWS FROM OPERATING ACTIVITIES (profit less non cash items e.g. depreciation, increase/decrease stocks, debtors, creditors etc)<BR>RETURNS ON INVESTMENTS/SERVICING OF FINANCE (interest payments, receipts)<BR>TAXATION (tax amount actually paid)<BR>CAPITAL EXPENDITURE/DISPOSALS<BR>EQUITY DIVIDENDS PAID (actual dividends paid - not proposed/accrued)<BR>MANAGEMENT OF LIQUID RESOURCES (increase/decrease in deposit accs, treasury bills etc)<BR>FINANCING (issues of shares etc)<BR><BR>Remember NRTCEMF can stand for "Never Really Thought CIMA Exams Much Fun". The last line is the increase/decrease in the cash/bank balances on the opening and closing balance sheets.<BR><BR>Hope this helps you.<BR><BR>Ste.
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Cash flow statements

    Cash flow statements can be very confusing but if you follow a step by step approach it should all fall into place. I have got a template available from when I used to do them at AAT/ACCA which I have still got. It gives the proforma and the "T" Accounts you can do to arrive at the figures which go into the cash flow statement. If anybody wants me to email this to them, send me an email to Steven.Collings1@ntlworld.com and I will forward this onto.<BR><BR>Good luck with them.<BR><BR>Ste
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Cash flow statements

    Cashflow statements can be difficult at first and lots of practice is required. I found the best way to learn these is to keep doing old exam papers. This will give you the practice of working out "payments to acquire fixed assets and proceeds from sale of fixed assets. Eventually it will all become clear! In the exam the proforma is given for the cashflow statement but not the reconciliation statement - you will have to remember what to enter there! if you need further help please ask.<BR><BR>Regards<BR>Bernadette

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