Proceeds from the issue of shares. What is share premium. Cash flow from financing activities

It is necessary to distinguish between the concepts of “emission” and “issue of shares”. Issue of shares ~ is a set of shares of one issuer with one state registered in accordance with the established procedure registration number, which may have different terms of issue, but provide the same rights.

Emission
shares - a set of actions by the issuer regarding the subscription to shares, i.e., activities from making a decision to issue shares to registering their issue. In other words, the authorized capital is associated with the concept of issuing shares, and the procedure for its formation is associated with the issue. Thus, the issue and release of own shares are primarily associated with the formation of equity capital, embodied at this stage in the authorized capital.

The issuance process includes the following stages:

Acceptance general meeting JSC decisions on placement of securities; adoption by the issuer (approval by the board of directors) of a decision to issue securities;

Preparation of a prospectus for the issue of securities;

Registration of the issue and prospectus (carried out by the Federal Commission for the Securities Market - FCSM);

Disclosure of information contained in funds mass media; production of securities certificates;

Placement of issue-grade securities;

Registration of a report on the results of the issue of securities;

Disclosure of information contained in the report-message in the media;

Registration of changes in the charter.

Owners of preferred shares (as opposed to owners of common shares) receive guaranteed dividends in the form of a fixed percentage and par value of the share and in the form of a fixed absolute amount. Dividends are paid to them after payments to bondholders but before common stockholders. A preferred share does not give the right to manage the company, and in certain specified cases it can be withdrawn (purchased) from the owners at predetermined prices, for example, due to an unexpected increase in their market value. Common shares are also bought back, but for other reasons, for example, to prevent a takeover by another company, when managers try to convince shareholders and investors that the shares are undervalued in the market. As a result, prices for these securities rise sharply. In some ways, preferred stock can be described as a priceless bond. They may also contain provisions for convertibility into other securities, usually common stock.

Shares are not usually held by the owners, even if they are issued in paper form. It is customary for a shareholder’s right to a share in the company’s property to be recorded in the form of a single certificate, which indicates the name of the investor and the number of shares owned by him. Such a certificate together; information about the owner is registered in the company's books. The process of circulation of shares is reflected in the form of redemption of certificates of previous owners and the issuance of other certificates to new shareholders. The certificate should not be confused with the stock form.

The share gives its owner the right to receive some part of the JSC's profit in the form of dividends. Ordinary shares do not have guaranteed dividends, since all issues related to their payment are decided by the board of directors
companies. He can cancel the payment of dividends, deeming it expedient to invest profits in production. This disadvantage of an ordinary share is compensated by a very important advantage: the ability of its owner to vote at shareholder meetings. The more common shares held, the greater the shareholder's power in the company. However, when a JSC is liquidated, for example as a result of bankruptcy, the owners of ordinary shares are the last to receive the remainder of the property distributed by creditors. Responsibility for the successful management of a business ultimately falls on its owners - the shareholders.

The most important characteristic of a stock, like any type of product, is its price. There are several types of stock prices. The par value (the term “value” is traditionally used, but not in the scientific sense) is indicated on the share itself, but does not have any significance in calculating its par value. It is used for accounting. In some countries, such as the United States, shares may be issued without par value. To post them in the accounting accounts, the so-called declared value is used, which is reflected (announced) in the issue prospectus.

Market (exchange) value is the most important type of monetary valuation of a security, since it is what is used when buying and selling shares. Most often this price is determined as a based income. For example, if a share gives a fixed annual dividend of 100 rubles, and the loan interest rate (for example, refinancing of the Central Bank) is 12% per annum, the market value of the paper will be 500 rubles: (100 rubles x 100%) - 12%. The stock price also depends on supply and demand, which are determined by market conditions.

In addition, the market price of a stock, like any security, reflects the trade-off for its owner between the risk of investing in it and the expected dividends.

Particular attention should be paid to the so-called intrinsic value of a share. It is important for an investor whose goal is to receive a dividend, and is determined based on expected dividend income. The investor views such paper as interest-bearing capital. The actual value is compared with the exchange rate (market price) of the stock, and as a result, a conclusion is made about the advisability of its acquisition or further ownership.

The market value of a share1 is formed on an organized and open stock market in a competitive environment under the influence of many macro- and micro-level factors.

IN Russian legislation The concept of market value of shares is disclosed in Art. Z Federal Law of the Russian Federation No. 135-FZ “On valuation activities in Russian Federation» dated July 29, 1998 with the latest amendments and additions, as well as Art. 3 assessment standards No. 20-05-96.

Market value is the monetary value for which shares are expected to change hands as a result of a commercial transaction on a certain date. In this case, each party is considered to act reasonably, having all the necessary information and without coercion.

To form the market value of shares, a number of conditions must be met:

The stock market must be organized, and information about quoted quotations and events on the stock market must be available to all interested parties;

There must be many independent participants in the stock market, since with a limited number of them, it is possible to establish manipulative prices formed under the influence of a small number of factors;

Market participants must act freely, taking into account a variety of macro- and micro-level factors;

The market infrastructure must ensure that all market participants comply with the law and business norms.

The market value is:

Shares that are actively traded on the stock market and have market quotes from professional stock market participants;

Shares in which real transactions were carried out between independent buyers and sellers under conditions of competition and open information about bidding.

For companies whose shares are traded or have limited circulation on the stock market (low-liquid/illiquid), the process of formation of the value of shares differs significantly from the formation of the value of freely traded shares. This is due to the fact that information about the state of capital and financial and economic activities of such companies, as a rule, is closed and accessible to a limited circle of people: company management; strategic shareholders owning controlling stakes; government bodies exercising control and supervision over the activities of joint-stock companies, as well as specialized organizations, for example, banks in which accounts are opened, auditor-consultants.

Low-liquidity and illiquid shares have only intrinsic (fundamental) value, which is the basis for determining value close to the market. The internal value of shares is formed under the influence of the value of assets, the current production and financial-economic condition of the joint-stock company. Intrinsic value is calculated by an independent appraiser based on his knowledge, professional skills and life experience; it is his expert assessment as of a certain date and allows one to determine a value close to the market value, the so-called recommended value. The recommended value is a value obtained by calculation and has not gone through the bidding procedure between buyer and seller in conditions of competition and equal access to information, therefore it is not market value and serves as the basis for making decisions on a transaction with shares.

The following have intrinsic (fundamental) value:

Low-liquid and illiquid shares;

Shares with blocks of which real transactions between buyers and sellers were not carried out or were carried out, but the trading results are not available to the general public, and therefore cannot be used as
the quality of the example;

Shares whose value is determined based on other approaches (not market quotes or actual transactions). For example, when one of the founders leaves the CJSC, the redemption value of his share is determined not on the basis of market quotations, which are absent, but in accordance with the current legislation on the balance sheet - the net asset method. Such a transaction cannot be considered a market transaction.

The formation of the market value of JSC shares (Fig. 4.2) is a process that occurs throughout the entire life cycle of the company. The capital of any joint stock company may increase or decrease under the influence of various factors. This is reflected in changes in stock market participants' quoted prices for shares. Equity market participants buy and sell corporate shares only at the price that, in their opinion, reflects the most accurate value at any given time. The market price of shares includes all information about past events in the stock market, as well as information about upcoming events that have been publicly announced or become known as a result of access to insider information.

We emphasize that shares as a title of business ownership of the capital of a joint-stock company, expressed by property and other assets, provide shareholder-investors with certain rights, allowing the owner not only to manage the activities of the joint-stock company, but also to receive part of the profit in the form of dividend payments.

Rice. 4.2. Formation of share prices

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The assessment of securities of its own issue, embodied in equity capital, in particular in its advanced part, does not affect the assessment of equity capital as a whole. At the same time, for accounting purposes, shares of own issue must be valued at par, market, issue, redemption, accounting (book) and liquidation values ​​(Fig. 4.4).

When a company is founded, payment for its shares is carried out at their nominal value, and during all subsequent issues - at the issue price. This is due to the fact that the equity capital of the joint-stock company is higher than the authorized capital, since during its existence joint stock company the value of its assets increases due to inflation processes, the addition of retained earnings, etc.

The specificity of shares is that several categories of values ​​are introduced for them: market, economic, nominal, balance sheet, issue, liquidation.

Market value is determined by the market price of the stock at each current moment. If this price is multiplied by the number of shares outstanding, the market value of the corporation's equity is obtained.

The economic value of a stock is the present value of the cash flows an investor expects to receive from the stock in the future. In other words, it is the discounted value of the future dividend stream and the price of the stock at the time of sale (the stock provides only these two types of cash flows).

The nominal value Рт is the official share price established by the founders of the joint-stock company at the time of approval of its charter; this is the share authorized capital per share.

The par value determines the minimum value of the share, which cannot be reduced by paying dividends; this is the minimum that shareholders can receive in the event of liquidation of the joint-stock company. In this regard, the price of shares is usually set very low. By multiplying the nominal value of an ordinary share by the number of shares of a given issuer (for example, Salyut) N in circulation, we obtain the value of the authorized capital of Salyut - NPHOM.

During the initial placement of additional shares, the established placement price (issue price) RazM almost always exceeds the par value. If an additional M shares of Salyut were placed at a price of P, then own funds“Salyut” will increase by the amount of MP. In this case, the amount of МРti will be added to the authorized capital, and М(Р - Рвдм) will be included in the second part of Salyut’s own funds - additional capital.

Finally, based on the results of the year, Salyut may have a net profit, part of which is paid to shareholders in the form of a dividend, and the remaining retained earnings are reinvested. Accumulated amounts of retained earnings are accounted for on an accrual basis.

Rice. 4.4. Methods for valuing securities

The total amount of the authorized capital, additional capital and retained earnings constitutes the JSC’s own funds and is taken into account in the “capital plus reserves” section of the liability side of the balance sheet.

Book value per share is the value obtained by dividing the firm's equity by the number of common shares.

The book value of shares is determined during audits, if the issuer is going to undergo a listing to include its shares in the list of securities admitted to exchange trading, as well as during the liquidation of a joint stock company in order to determine the share of ownership per share (if there are no preferred shares in the capital shares). Otherwise, the liquidation value of the shares is determined.

There are three theoretically! stock valuation models: dividend stream discounting, income stream discounting and cash flow discounting. If the variables used in these models are chosen correctly, then all models will give the same result. The most commonly used model is the dividend discounting model.

The rate of return k, which in formula (4.2) serves as the discount rate for calculating the present value of the stock, is called the market capitalization rate. In an efficient market, the capitalization rate reflects the opportunity cost of investing in a stock.

Strictly speaking, the discounting formula allows us to state that the present value of a share /^ (determining its price at the initial point in time) can be represented as

where: - DbD2, D3,...,Dn - cash flows at time 1,2,...,p;

Кі,к2,кз,...кп - market capitalization rates at the moment 1,2,...,п;

P is the number of years during which the investor expects to own the share.

Formula (4.3) assumes that the investor must specify the predicted values ​​of cash flows D( and discount rates &, for n years in advance, which makes the task of calculating Po practically impossible. Therefore, to build an acceptable mathematical model, significant assumptions and simplifications are made.

1. We will assume that kx = K2- ... = k. In other words, investors always equally assess the risk associated with a given stock. This assumption is not so strict, since the same is done when estimating real funds.

2. It is assumed that any value Dt=Dt.i x (l+gt)> where gt is the growth rate of annual payments in year t, Dt is the amount paid in year t, Dt_i is the amount paid on the share a year earlier.

The simplest model for estimating the value of a stock was proposed by the American economist Myron Gordon in 1962. To construct it, Gordon made other simplifications: *

Since the life of the stock is theoretically unlimited, we consider that the stream of cash payments represents an endless stream of dividends (there will be no liquidation amount, since the stock exists indefinitely). In other words, taking into account the simplifications already made, formula (4.3) can be represented as follows:

So, according to the Gordon model, the present value of a share Po is determined by dividing the value of the dividend D expected based on the results of the current year by the difference between the market capitalization rate k and the expected dividend growth rate g.

Gordon's model allows you to quickly estimate the current value of shares. However, before applying it and making an investment decision on this basis, it is necessary to keep in mind the following: since the model involves discounting incoming dividends to infinity, the formula

(4.7) is very sensitive even to small changes in the initial data.

In addition to the simplifications and additions mentioned, Gordon's model assumes that:

K must always be greater than g, otherwise the stock price becomes uncertain. This requirement is quite logical, since the growth rate of dividends g may at some point exceed the required rate of return of the share k. However, this will not happen if we assume the chosen discount period is infinite, because in this case dividends would constantly grow at a higher rate than the norm return of shares, which is impossible;

The firm must pay dividends regularly, otherwise the Gordon model is not applicable. Moreover, the requirement for the constant value of g means that the company always allocates the same share of its income to pay dividends;

The requirement that the values ​​of k and g remain constant up to infinity limits the capital structure of the company: it is believed that the only source of financing for the company is its own funds, and there are no external sources. New capital comes to the company only through the retained share of income; the higher the share of dividends in the company's income, the lower the level of capital renewal.

The first term Di/Po is called dividend yield; its assessment is not difficult. To estimate g, you can use the following method: let the share bring profit E\ during the year. Dividends paid are determined by the share of payments p: Di = pE\ For example, if a company pays 40% of annual earnings per share as dividends, then p = 0.4 and Dj = 0.4Ej. The rest goes to reinvestment - to purchase new or update old equipment. This part is determined by the return share b. This means p=(1-b) and Di=(l- b)xEi=0.4xEi. If we assume that the company uses only its own funds, then the rate of return on reinvested earnings is equal to the ratio of earnings per share E\ to the book value of the share; this rate of return is called return on equity (ROE):

This formula connects two rates of return: k - the capitalization rate, which determines the cost of the lost opportunity to purchase a share, i.e., the rate of return of the best alternative means of the same level of risk, and ROE - return on capital. The interaction of these two quantities, taking into account the company’s dividend policy (which is determined by the value b, affects the current value of the stock. All shares can be conditionally divided into three groups: normal companies, growing companies and declining companies.

For normal firms k = ROE. This means that a normal firm and its competitors have chosen the opportunity to invest their own funds in projects with NPV> 0 and are forced to invest money in investments with NPV = 0. Therefore, the ROE of each firm is equalized and approaches the market capitalization rate k. Substituting k = ROE in the formula (4.10 ), we get

This formula allows us to draw two conclusions. Firstly, the discount rate can be expressed through the ratio PJE only if k = ROE (an important remark, since the PIE value is one of the important qualitative characteristics of shares given in their quotation tables). When using the reciprocal of PIE as the discount rate in the Gordon formula, you can get a result that is far from the truth if the coefficient is ROE. Secondly, if the company is “normal”, then investors are absolutely indifferent to its dividend policy -

they get the same return from the stock regardless of the dividend ratio and price gain.

For a growing firm, ROE > k, i.e., this firm has the opportunity to invest its own funds in projects for which NPV > 0. In other words, such firms have the opportunity to acquire capital resources at a cost of k interest and receive a rate of return ROE from their operation , exceeding k.

Finally, for a declining firm, the ROE is 0. Such firms are forced to significantly reduce production and typically benefit from a higher dividend share.

Necessity market valuation shares arises during the takeover and merger of a company, the purchase of a voting block of shares, the issuance of a loan secured by shares, the transformation of an OJSC into a CJSC, determining the feasibility of purchasing previously sold own shares, the reorganization and liquidation of a company.

In the practice of functioning of a joint-stock company, a merger of companies takes place through the exchange of functions. There are two options: 1 - both companies remain unchanged, but there is a mutual exchange of shares, thus, each company owns a certain number of shares of the other company and a number of directors are “on the boards of directors of both companies; 2 - two companies merge and shares of one are exchanged for shares of the other. The exchange can occur with or without additional payment.

As a rule, the redemption price of shares coincides with the market value, except in cases where the joint-stock company is reorganized.

In conclusion, we emphasize that the main economic and financial goal of a joint-stock company is to ensure the welfare of shareholders. At the same time, some companies strive to demonstrate dynamic growth in profits and share prices, while others try to consistently pay high dividends. In Russia, both are possible at the same time.

The statement of cash flows of an enterprise enables users of financial statements to assess the ability of an enterprise to generate cash and cash equivalents, as well as to assess the enterprise's needs for the use of those cash flows. The purpose of IFRS 7 is to standardize information about cash flows by classifying cash flows by type of activity: operating, investing and financing.

An entity shall prepare a statement of cash flows in accordance with the requirements of this Standard and present it as an integral part of its financial statements for each period for which it is presented. financial statements.

Enterprises generate and use cash regardless of the nature of the activity and regardless of whether cash can be considered as a product of the enterprise (for example, banks and other financial institutions). Enterprises need cash for the same reasons, no matter how different their activities are. All enterprises need cash to conduct operations, to pay off liabilities, and to pay dividends. Accordingly, IFRS 7 requires the presentation of a statement of cash flows from all entities.

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Benefits of a Cash Flow Statement

The cash flow statement, when used in conjunction with other forms of financial statements, allows users to evaluate changes in the net assets of an enterprise, its financial structure(including liquidity and solvency), as well as its ability to influence the amount and timing of cash flows. The statement of cash flows is useful in assessing a business's ability to generate cash, and also in modeling, estimating, and comparing the present value of future cash flows with other businesses. The report allows you to compare data on the operating performance of different enterprises, since it eliminates the consequences of applying different accounting methods to similar transactions and events.

Historical cash flow data is often used to estimate the amount, timing and likelihood of future cash flows. They are also useful in examining the accuracy of previous estimates of future cash flows and in examining the relationship between profitability and net cash flows and the impact of price changes.

IFRS 7 Definitions

Cash include cash in accounts and on hand and demand deposits.

Cash equivalents - These are short-term, highly liquid investments that are easily convertible into known amounts of cash and are subject to an insignificant risk of changes in their value.

Cash flows - receipts and payments of cash and cash equivalents.

Operations - the main income-generating activities of the enterprise and other activities other than investment and financial activities.

Investment activities - acquisition and disposal of long-term assets and other investments that are not cash equivalents.

Financial activities - activities that lead to changes in the size and composition of the contributed capital and borrowed funds of the enterprise.

Cash and cash equivalents

Cash equivalents are intended to cover short-term cash obligations and not for investments or other purposes. For an investment to qualify as a cash equivalent, it must be readily convertible to a known amount of cash and be subject to an insignificant risk of changes in value. Thus, generally, investments are classified as cash equivalents only when they have a short maturity, such as 3 months or less from the date of acquisition. Investments in the equity of other entities are not included in cash equivalents unless they are in substance cash equivalents (for example, preferred shares purchased shortly before their maturity date and having a specified maturity date).

Bank loans are generally considered to be a financing activity. However, in some countries, bank overdrafts, repayable on demand, form an integral part of a company's cash management. In this case, bank overdrafts are included in the composition of cash and cash equivalents. A characteristic feature of such agreements with banks is that the bank account balance changes from positive to negative.

Cash flow does not include turnover between cash and cash equivalents items because these components are part of an enterprise's cash management and not part of its operating, investing, or financing activities. Cash management involves investing excess cash in acquiring cash equivalents.

Presentation of the Cash Flow Statement

The cash flow statement must contain information about cash flows for the reporting period, broken down into flows from operating, investing or financing activities.

An entity presents cash flows from operating, investing or financing activities in a form that best fits the nature of its activities. Classification by activity provides information that allows users to assess the impact of those activities on the financial position of an enterprise and the amount of its cash and equivalents. This information can also be used to assess the relationships between these activities.

The same transaction may involve cash flows classified differently. For example, loan payments may include both interest and principal. The interest portion may be classified as an operating activity and the principal portion as a financing activity.

Operations

The amount of cash flows from operating activities is a key indicator of how an enterprise generates sufficient cash flow to maintain the enterprise's operating capabilities, repay loans, pay dividends and make other investments without resorting to external sources of financing. Information about the specific components of cash flows from operating activities for prior periods, in combination with other information, will be useful in forecasting future cash flows from operating activities.

Cash flows from operating activities are primarily related to the core activities of the entity. These flows typically result from transactions included in the definition of profit or loss. Examples of cash flows from operating activities:

Cash receipts from the sale of goods and provision of services;

Cash receipts in the form of royalties, fees, commissions and other revenue;

Cash payments to suppliers for goods and services;

Cash payments to and on behalf of employees;

Cash receipts and payments to an insurance company for premiums, claims, annuities and other insurance benefits;

Cash payments or income tax refunds if they cannot be directly attributable to financing or investing activities;

Cash receipts and payments from contracts entered into for commercial or trading purposes.

Some transactions, such as the sale of equipment, may result in a gain or loss. Cash flows from such transactions are classified as cash flows from investing activities. However, cash payments made to produce or acquire assets for rental to others and their subsequent sale in accordance with paragraph 68A of IAS 16 Property, Plant and Equipment are classified as cash flows from operating activities. Cash receipts from leases and subsequent sales of such assets are also cash flows from operating activities.

An entity may hold securities and loans held for business or trading purposes, in which case they may amount to inventory acquired specifically for resale. Therefore, cash flows arising from the purchase or sale of these securities are classified as operating activities. Similarly, advances and loans provided by financial institutions are generally classified as operating activities because they relate to the principal activities of the institution.

Investment activities

Separate disclosure of cash flows from investing activities is important because it shows what expenses have been incurred to acquire resources intended to generate future earnings and future cash flows. Examples of cash flows from investing activities:

Cash payments for the acquisition of fixed assets, intangible and other long-term assets. These include payments related to capitalized development costs and independently produced fixed assets;

Cash receipts from the sale of fixed assets, intangible assets and other long-term assets;

Cash payments for the acquisition of equity or debt instruments of other enterprises and interests in joint ventures (other than payments for instruments considered to be cash equivalents or held for business or trading purposes);

Cash proceeds from the sale of equity or debt instruments of other enterprises and interests in joint ventures;

Advances and loans provided to other persons (except for advances and loans provided by financial institutions);

Cash receipts from the return of advances and loans provided to other persons;

Cash payments or receipts under futures or forward contracts, options and swap agreements, unless the contracts are entered into for trading or trading purposes or the payments or receipts are classified as financing activities;

When a contract is accounted for as a hedge, the cash flows from the contract are classified in the same way as the cash flows from the hedged position.

Financial activities

Separate disclosure of cash flows from financing activities is important because this information is useful in forecasting the entity's future cash flows from those who finance it. Examples of cash flows from financing activities:

Cash proceeds from the issue of shares or other equity instruments;

Cash payments to owners for the acquisition or redemption of company shares;

Cash receipts from the issue of debentures, loans, bills, bonds, mortgages and other short-term and long-term borrowings;

Cash payments on borrowed funds;

Cash payments made by a tenant to reduce the outstanding balance of a finance lease.

Reflection of cash flows from operating activities

An entity must report cash flows from operating activities using either:

Direct method, which discloses information about the main types of gross cash receipts and payments;

An indirect method in which profit or loss is adjusted by taking into account the results of non-cash transactions, any deferral or accrual of past or future cash receipts or payments arising from operating activities, and items of income or expense related to cash receipts or disbursements. investment or financial activities.

An enterprise is encouraged to use the direct method of presenting cash flows from operating activities. The direct method provides information useful in estimating future cash flows that is not available with the indirect method. When using the direct method, information on the main types of gross cash and payments can be obtained:

From enterprise accounts; or

By adjusting sales, cost of sales (interest and other similar income and expenses for financial institutions) and other items in the statement of comprehensive income, taking into account the following factors:

o Changes in inventories and accounts receivable and payable from operating activities during the period;

o Other non-monetary items; And

o Other items that give rise to cash flows from operating or financing activities.

When using the indirect method, net cash flow from operating activities is determined by adjusting profit or loss for the following factors:

Changes in inventories and accounts receivable and payable from operating activities during the period;

Non-cash items such as depreciation, amortization, valuation reserves, deferred taxes, unrealized foreign exchange gains or losses, retained earnings of associates and minority interest; And

Other items that give rise to cash flows from investing or financing activities.

Alternatively, net cash flow from operating activities may be presented indirectly by reflecting revenues and expenses disclosed in the statement of comprehensive income and changes in inventories and accounts receivable and payable from operating activities during the period.

Reflection of cash flows from investing and financing activities

An entity must report its principal gross cash receipts and gross cash payments arising from investing and financing activities separately, except for cash flows, which are reported on a net basis.

Reflection of cash flows on a net basis

Cash flows from the following operating, investing or financing activities may be reported on a net basis:

Cash receipts and payments on behalf of clients when the cash flow reflects the activities of the client rather than the activities of the enterprise; And

Cash receipts and payments for items characterized by rapid turnover, large amounts, and short maturities.

Acceptance and payment of bank demand deposits;

Investment company client funds; And

Rent collected on behalf of property owners and passed on to them.

Examples of cash receipts and payments on behalf of clients:

Examples of cash receipts and payments of fast turnover:

By the amount of debt of credit card holders;

Purchases and sales of investments; And

Other short-term loans, for example, with a repayment period of up to 3 months.

Cash flows arising from each of the following activities of a financial institution may be reported on a net basis:

Cash receipts and disbursements for accepting and disbursing fixed maturity deposits;

Placement and withdrawal of deposits in other financial institutions; And

Advances and loans to customers and repayment of these advances and loans.

Cash flow in foreign currency

Cash flows arising from foreign currency transactions must be reported in the entity's functional currency by applying to the foreign currency amount the exchange rate between the functional and foreign currencies at the date of the cash flows.

Cash flows of a foreign subsidiary must be translated at the appropriate exchange rate between the functional and foreign currencies at the date of the cash flows.

Cash flows denominated in foreign currencies are reported in accordance with IAS 21 The Effects of Changes in Foreign Exchange Rates. This allows you to use an exchange rate that is approximately equal to the actual rate.

Unrealized gains and losses resulting from changes in foreign exchange rates are not cash flows. However, the effect of changes in currency exchange rates on cash and cash equivalents available or expected to be received in foreign currencies is presented in the statement of cash flows to reconcile cash and cash equivalents at the beginning and end of the reporting period. This amount is presented separately from cash flows from operating, investing and financing activities and includes any differences that would have arisen had the cash flows been reported at period-end exchange rates.

Interest and dividends

Cash receipts and payments related to the receipt and payment of interest and dividends must be disclosed separately. Each such receipt or payment must be qualified on a consistent basis from period to period as a cash flow from operating, investing or financing activities.

The total amount of interest paid during the period is disclosed in the statement of cash flows, whether it is recognized as an expense in the income statement or capitalized in accordance with the permitted alternative treatment in IAS 23 Costs on loans."

For financial institutions, interest paid and interest and dividends received are classified as cash flows from operating activities. However, for other enterprises there is no consensus on how to qualify these payments and receipts. They may be classified as cash flows from operating activities because they are included in the definition of profit or loss. And at the same time, they can be classified as cash flows from financial and investment activities, since they represent financing costs or investment income.

Dividends paid may be classified as cash flows from financing activities because they are a financing cost. However, they may be classified as an element of cash flows from operating activities to help users assess the entity's ability to pay dividends from operating cash flows.

Income tax

Payments of income taxes are disclosed separately and classified as cash flows from operating activities unless they can be directly attributed to financing or investing activities.

While tax expenses may be readily attributable to investing or financing activities, the corresponding tax cash flows may not be attributable and may relate to a period other than the cash flow of the underlying transaction. . Therefore, taxes paid are generally classified as cash flows from operating activities. When it is practicable to attribute tax cash flows to a specific transaction classified as an investing or financing activity, those flows are classified accordingly.

When tax cash flows relate to more than one activity, the total amount of taxes is disclosed.

Investments in subsidiaries, associates and joint ventures

When accounting for investments in subsidiaries and associates accounted for using the equity or cost method, the investor's statement of cash flows is limited to information about cash flows between itself and the investee, such as information about dividends and advances.

An entity that reports its interest in a jointly controlled entity (see IAS 31 Interests in Joint Ventures) using the proportionate consolidation method includes in its consolidated statement of cash flows its proportionate share of the cash flows jointly controlled enterprise. And an entity that reports its share using the equity method includes in the statement of cash flows information about the cash flows associated with investments in the jointly controlled entity, distributions of profits, and other payments or receipts between it and the jointly controlled entity.

Changes in direct ownership interests in subsidiaries and other business units

Aggregate cash flows arising from acquisitions and losses of control of subsidiaries and other business units must be presented separately and classified as investing activities.

An entity must disclose the following aggregate information relating to both acquisitions and losses of control over subsidiaries during the period:

Total compensation paid or received;

The share of compensation represented by cash or cash equivalents;

The amount of cash and cash equivalents held by subsidiaries or other business units over which control is gained or lost; And

The amounts of assets and liabilities, other than cash and cash equivalents, in subsidiaries or other business units over which control is gained or lost, summarized by major category.

Presenting in one line the cash flow impact of acquisitions or losses of control of subsidiaries or other business units, and separately disclosing the amounts of assets and liabilities acquired or disposed of, helps separate such flows from other flows arising from other operating, investing or financial activities.

The aggregate amount of cash paid or received as consideration upon gaining or losing control of a subsidiary or business unit is reported in the statement of cash flows less any cash and cash equivalents acquired or disposed of in such transactions or events.

Cash flows arising from changes in direct ownership interests in a subsidiary that do not result in a loss of control must qualify as cash flows from financing activities.

Changes in direct ownership interests in a subsidiary that do not result in a loss of control (for example, a parent's purchase or sale of equity interests in a subsidiary) are accounted for as equity transactions.

Non-monetary transactions

Investment and financing transactions that do not require the use of cash and cash equivalents should be excluded from the statement of cash flows. Similar transactions should be disclosed in other forms of financial statements in a manner that provides full necessary information about such financial or investment activities.

A significant part of investment and financing activities does not have a direct impact on current cash flows, but at the same time affects the structure of capital and assets of the enterprise.

Components of cash and cash equivalents

An entity must disclose the components of cash and cash equivalents and provide a reconciliation of the amounts contained in the statement of cash flows with similar items presented in the statement of financial position.

Given the diversity of cash management practices and banking arrangements around the world, and in order to comply with IAS 1 Presentation of Financial Statements, an entity is required to disclose the policies it has adopted for determining the structure of cash and cash equivalents.

The effect of any change in the policy for determining the components of cash and cash equivalents, for example a change in the classification of financial instruments previously considered part of the entity's investment portfolio, is reported in accordance with IAS 8 " Accounting policy, changes in accounting estimates and errors.”

Other disclosures

An entity must disclose, together with management's commentary, the amount of significant cash and cash equivalents held by the entity that are not available for use by the group.

There are various circumstances in which cash and cash equivalent balances may not be available for use by the group. For example, measure currency regulation or other legal restrictions that prevent the use of these funds in general by the parent or subsidiary.

Additional information may be relevant to users' understanding of the financial position and liquidity of the entity. Disclosure of this information, along with management comments, is encouraged and may include:

Amounts of unused loan funds that can be used to finance future operating activities and to repay investment obligations, indicating restrictions on the use of these funds;

Aggregated amounts of cash flows by operating, investing and financing activities related to interests in joint ventures, data on which are presented using the proportionate consolidation method;

Aggregate amounts of cash flows representing increases in operating capability, separate from the cash flows required to maintain operating capability; And

The amount of cash flows arising from the operating, investing and financing activities of each reportable segment (see IFRS 8 Operating Segments).

Separate disclosure of cash flows representing increases in operating capabilities and cash flows required to maintain operating capabilities allows users to determine whether the entity is providing sufficient funds to maintain its operating capabilities. An enterprise that does not allocate sufficient funds to maintain its operating capabilities may be sacrificing its future profitability in the name of maintaining current liquidity and distributing profits to owners.

Disclosure of cash flows by segment allows users to better understand the relationship between cash flows at the enterprise level as a whole and at the level of its individual components, as well as monitor the availability and variability of cash flows by segment.

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In international practice, in the section of the report characterizing cash flows from financial activities, it is customary to reflect the inflows and outflows of funds associated with the use of external financing (own and borrowed).

Changes in equity capital considered in the financing activities section are usually represented by cash proceeds from the issue of shares, as well as share premium received. Changes in equity as a result of net profit or loss are not taken into account in the financial activities section, since expenses and income associated with the formation financial result, are reflected in operating activities. “Flow of funds as a result of financial activities” is determined on the basis of changes in the “equity capital” section of the balance sheet of the articles “providing for future payments”, “long-term liabilities”, current liabilities." Cash flows from financial activities are:

– cash receipts from the issue of shares and other equity instruments, as well as additional investments from owners;

– proceeds from the issue of bonds, loans, long-term and short-term loans;

– targeted funding and revenues;

– transfer of funds to repay the principal amount of debt on received loans and borrowings;

Funds used to repurchase own shares.

When taking into account cash flows from financial activities, special attention should be paid to the correct interpretation of regulatory documents, since for one area of ​​activity the operation may be of an investment nature, and for another financial.

Table 5

Items of cash flow statement indicators for financial activities with corresponding correspondence accounts.

Table 6

The final part of the cash flow statement is the resulting items of the report.

3 Drawing up a report using the indirect method

The indirect method is more common in world practice as a method of preparing a cash flow statement. It includes elements of analysis, since it is based on a comparison of changes in various balance sheet items for the reporting period, characterizing the property and financial position of the organization, and also includes an analysis of the movement of fixed assets, their depreciation and other indicators that cannot be obtained solely from the balance sheet data . As a result of applying the indirect method, the financial result (net profit) of the organization for the period is converted into the difference between the amounts of funds at the disposal of the organization as of the beginning and end of the reporting period.

Net cash flow differs from the amount of the financial result obtained for a number of reasons:

The financial result reflected in the income statement is formed in accordance with the assumption of temporary certainty of the facts of economic activity (expenses and income are recognized in the accounting period in which they were accrued, regardless of the actual cash flow);

The presence of deferred expenses leads to the fact that the actual amount of payments differs from the cost of production;

Expenses accrued in the reporting period, accompanied by the emergence of accounts payable, increase the cost without changing the amount of funds of the organization;

The acquisition of long-term assets and the associated cash outflow does not affect the financial result:

The amount of financial results is influenced by expenses not accompanied by an outflow of cash, for example, depreciation of fixed assets and intangible assets;

The source of an increase in funds is not necessarily profit (for example, the influx of funds can be ensured by raising them on a borrowed basis). Likewise, cash outflows are not always associated with a decrease in financial performance;

The discrepancy between the financial result and net cash flow is affected by changes in items of current assets and short-term liabilities.

To eliminate these discrepancies when determining net cash flow from current activities, adjustments are made to the financial result taking into account:

1) changes in inventories, current accounts receivable, short-term financial investments, short-term liabilities, excluding loans and credits, during the reporting period;

2) non-monetary items: depreciation of non-current assets; exchange rate differences; profits (losses) of previous years identified in the reporting period; written off receivables (payables); accrued but unpaid income from participation in other organizations and others;

3) other items accompanied by the emergence of cash flows from investment or financial activities.

When preparing a report using the indirect method, to obtain information about cash flows in connection with the main activity, all costs not related to the payment of cash, and, above all, depreciation, are added to the net profit indicator. From the resulting amount, items leading to an increase in assets or a decrease in liabilities (increase in accounts receivable or decrease in accounts payable) are subtracted, and items leading to an increase in liabilities (increase in accounts payable) are added to net profit. Thus, net profit increases and decreases for all items that do not involve cash flow, and the resulting result corresponds to the cash flow balance. Summarizing the balance of cash flows for all other (except the main) types of activities (investment, financial) with direct and indirect methods is carried out in the same way.

Profit, when calculating net cash flow from current activities, should be shown with a minus sign, and negative result(loss) - with a plus sign.

The purpose of making adjustments is to show which items of current assets and short-term liabilities accounted for the change in the amount of cash at the end of the reporting period compared to its beginning.

Regardless of the method by which cash flows from current activities were presented in the report, the movement of cash or the reduction of debt to creditors means an outflow of funds - it is shown in the report with a minus sign.

The weakness of the indirect method is that cash inflows in the form of sales proceeds (an important source of income) and operating expenses associated with cash payments (an important cash outflow) are not taken into account. As a result of this method, the user is provided with information only about net inflows (outflows) from operating activities, and individual inflows and disbursements remain within the report. The main purpose of the cash flow statement, which is to obtain information about the sources of financial resources and the directions of their expenditure, is not fulfilled. Other information about cash and cash equivalents must be disclosed (along with comments) if it relates to amounts held by the entity that are not available for use by the group. In addition, any additional disclosure of information required by users is encouraged.

The section of the report that discloses information about cash flows from current activities using the indirect method may look like this (Table 4).

Table 7

Cash flow statement (indirect method)

4 Preparation of a cash flow statement in accordance with IFRS

The cash flow statement is necessary both for managers to control cash flows and for outside investors and shareholders, who, based on this report, can draw conclusions about the company's liquidity management, its income and the company's ability to raise significant amounts of cash.

The rules for drawing up a cash flow statement are established by IFRS 7 “Statements of Cash Flows”, according to which the report must contain information about the company’s cash flows in the context of operating, investing and financing activities. To prepare a report regarding operating activities, IFRS 7 allows the use of two methods: direct and indirect. Information about cash flows in the context of financial and investment activities can only be presented using the direct method.

Direct method of reporting.

When using the direct method, the main types of gross cash receipts and gross cash payments are disclosed. Information about the main types of cash receipts and payments can be obtained from a company's accounts by adjusting sales, cost of sales (interest income, interest expense and similar expenses for financial institutions) and other items in the income statement for changes in inventories and operating payables and receivables during the period, other non-cash items, other items leading to investment or financing cash flows.

In the case of obtaining information about the main types of cash receipts from accounting records, specialists responsible for reporting analyze accounting registers for cash flows and classify cash flows by type of activity (operating, financial or investing) and by cash flow items.

The main difficulty in preparing a cash flow statement using the direct method is related to the exclusion of internal turnover. It is necessary to eliminate turnover between the current account and the cash register and between the enterprises of the holding, and this requires a lot of time.

The composition of the items in the sections of the cash flow statement in accordance with IFRS 7 is determined by the company independently, and the examples given in the text of the standard are advisory in nature. The detail of the sections of the cash flow statement depends entirely on the information needs of the company. In theory, the cash flow statement could only show the total flows for each activity (and that would be sufficient).

When adjusting report items, most enterprises carry out a huge number of monetary transactions every day, so they are quite difficult to analyze and classify. It is easier to take as a basis the data already reflected in accrual accounting, which was used in drawing up the income statement and balance sheet. When preparing a cash flow statement, you need to exclude the impact of non-cash items ("Depreciation", "Reserves") and take into account changes in the company's assets, capital and liabilities.

A cash flow statement prepared using the direct method from information obtained by adjusting items of income and expenses is essentially an income statement prepared on the cash basis. At a certain stage of company development, it may turn out that it is important for managers and owners to see the actual income received and the actual expenses incurred, and not just the financial result calculated using the accrual method. Therefore, the indirect method is not suitable for them, and the direct method based on credentials is often too labor-intensive. In this situation, it is logical to prepare a cash flow statement using the direct method by adjusting the income statement data.

In order to correctly transform income statement items into incoming and outgoing cash flows, you need to find the corresponding assets and liabilities for each type of expense and income (that is, the balance sheet accounts for which they are recorded) and, based on the data from the analysis of accounts, calculate the amount of funds received.

Indirect method of reporting.

Under IFRS 7, when using the indirect method, net income or loss is adjusted to take into account the results of non-cash transactions, any deferrals or accruals of prior periods or future operating cash flows of payments and items of income or expense related to investing or financing cash flows. The indirect method reveals cash flows from operating activities (net inflows or outflows), and gross cash inflows and outflows are not analyzed and therefore not classified into cash flow items.

Adjustments to net income are in many ways similar to adjustments to income and expenses for amounts calculated using the cash method when constructing a statement of cash flows using the direct method. But since in this case net profit is taken as the basis, additional adjustments are necessary.

Preparing a statement of cash flows using the indirect method does not pose any particular problems, provided that the company's accounting policies are clear. Some difficulties in reporting may arise due to the fact that the accounting currency may differ from the reporting currency.

To prepare a cash flow statement, IFRS 7 recommends that companies use the direct method, since, unlike the indirect method, it allows obtaining the information necessary to estimate future cash flows. However, in practice, most companies use the indirect method. The choice of method for completing the "Operating Activities" section of the cash flow statement depends on a number of factors, for example, the purpose of reporting.

The main difference in cash flow statements prepared by direct and indirect methods is the information content for the end user. An internal user who thinks in terms of “cash flows” and focuses on the plan of cash receipts and payments needs a report compiled by the direct method. If we are talking about an external user, then there may be various options. It is easier to construct a cash flow statement using the indirect method. It is also quite informative. However, when using it, the absolute values ​​of payments and receipts are not considered, which can distort the true picture of cash flows.

It is necessary to understand that the cash flow statement is one of the most important tools for company management, including operational management. Since it is impossible to prepare a report using the indirect method during the reporting period, most companies use a report generated by the direct method.

According to IFRS 7, the statement of cash flows must explain the reasons for changes in the amounts of cash and cash equivalents. Cash includes cash and demand deposits, while cash equivalents include short-term, highly liquid investments that are easily convertible into a specified amount of cash and are subject to an insignificant risk of changes in value. These may include, for example, investments in financial instruments (excluding bank overdrafts).

In addition, IFRS requires disclosure of non-cash transactions that have a significant effect on the company's investing and financing activities in a note to the statement of cash flows. Examples of such transactions are the issue of shares for the purpose of acquiring assets, the conversion of debt into shares (transformation of debt into equity), the conclusion of a lease agreement for a significant amount (purchase of an asset under a capital lease), as well as barter transactions.

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Cash flow information enables users to assess an organization's ability to generate cash and estimate its cash needs. The requirements for the presentation and disclosure of cash flows are set out in IFRS (MS) 7 Statement of Cash Flows.

Must present for the period, classifying them into operating, investing and financing activities.

The classification of flows by activity category provides information that allows users to assess the impact of each activity on the financial position of the company and on the amount of cash (and cash equivalents). This information can also be used to analyze the relationship between specified categories of activities.

The same transaction may result in cash flows that are classified differently.

Operations

The amount of cash generated by operating activities is a critical indicator of whether a given category of activity generates enough cash to repay borrowings, maintain the company's productivity, pay dividends (and make new investments) without resorting to external sources of financing.

When forecasting cash flows from operating activities, information about their individual components in conjunction with other information is valuable.

Cash flows from operating activities are generated primarily in the course of core activities that generate the company's revenue. Thus, they usually result from transactions that contribute to net income.

Examples of cash flows from operating activities include:

• proceeds from the sale of goods and provision of services;
• receipts of rental payments for the provision of rights, remunerations, commissions and other types of revenue;
• payments to suppliers of goods (and services);
• payments to (and on behalf of) employees;
• receipts and payments by insurance companies for insurance premiums, claims, annuity and other types of insurance policies;
• payment (or reimbursement) of income taxes, except those related to financial or investment activities;
• receipts (and payments) under contracts for commercial (or exchange) operations.

Some transactions, such as the sale of a manufacturing facility, may result in a financial result that is included in net income. However, the corresponding cash flow relates to investing activities.

Companies specializing in securities transactions will record them as inventory acquired for resale. Cash flows generated as a result of transactions for the purchase and sale of securities are classified as operating activities. As for other companies, for them it will be either investing activities or cash equivalents.

Cash advances and loans by financial institutions are generally classified as operating activities because they are core activities that generate a company's revenue.

Investment activities

Separate disclosure of cash flows from investing activities reflects the extent of expenditures on resources intended to generate future income and cash flows.

Examples of cash flows from investing activities include:

• payments for the acquisition of fixed assets, intangible assets and other non-current assets. These include payments related to the capitalization of costs for the development and construction of fixed assets using an economic method;
• proceeds from the sale of fixed assets, intangible assets and other non-current assets;
• payments for the acquisition of shares or debt instruments of other companies, as well as shares in joint ventures (with the exception of such instruments that act as cash equivalents or instruments for carrying out commercial (or exchange) transactions);
• proceeds from the sale of shares (or debt instruments) of other companies, as well as shares in joint ventures (with the exception of such instruments that act as cash equivalents or instruments for carrying out commercial (or exchange) transactions);
• advances (or lending) to other parties (with the exception of similar transactions carried out by financial institutions);
• proceeds in repayment of advances or loans provided to other parties (except for similar transactions carried out by financial institutions);
• payments under futures, forward, option contracts and swaps (except for contracts concluded for the purpose of carrying out commercial or exchange transactions, or payments related to financial activities).

Financial activities

Separate disclosure of cash flows from financing activities is necessary to forecast cash demands from those providing capital to the company.

Examples of cash flows from financing activities include:

• proceeds from the issue of shares or the issue of other equity instruments;
• payments to owners upon redemption or redemption of company shares;
• proceeds from the issue of bonds, bills, mortgages, loans, as well as from other short-term or long-term debt instruments;
• payments to repay loans;
• payments by the lessee to satisfy the finance lease obligation.

A company must prepare a statement of cash flows to present cash flows from operating activities using:

• direct method, in accordance with which information about the main classes of gross receipts and gross disbursements is disclosed; or
• indirect method under which net income is adjusted to take into account the effects of non-cash transactions, amounts deferred (or accrued) from past (or future) cash flows from operating activities, and items of income (or expense) related to investing or financing cash flows activities.

Methods for preparing a statement of cash flows for operating activities are reflected in table. 1.

Companies are encouraged to report cash flows from operating activities using the direct method in their statement of cash flows, as this method provides information that the indirect method does not provide.

Table 1. Methods for preparing a cash flow statement

In accordance with the direct method, information on the main classes of gross receipts and gross payments can be obtained:

• from accounting registers;
• by adjusting revenue figures, cost of sales (for financial institutions - interest and similar types of income, interest expenses and similar types of expenses), as well as other items in the income statement total income taking into account:
• changes in inventory, receivables and payables from operating activities;
• other non-monetary items;
• other items the movement of which is related to investing or financing activities.

Alternatively, net cash flow from operating activities may be presented using the indirect method by reporting revenues and expenses in the statement of comprehensive income and changes during the reporting period in inventory balances, receivables and payables from operating activities.

An entity must present gross cash receipts and cash disbursements separately for investing and financing activities, except for cash flows that are reported on a net basis.

The following cash flows from operating, investing or financing activities may be reported on a net basis:

• receipts and payments on behalf of clients, when cash flows reflect the activities of the client rather than the company itself. Examples of such receipts and payments may include:
• acceptance (and payment) of bank deposits upon request;
• financial resources intended by the investment company for clients;
• rent collected on behalf of (and paid to) the owners of a property;
• receipts and payments for items characterized by high turnover, large amounts and short repayment periods. Examples of such receipts and payments include advance payments (and repayments) for:
• the principal amount of debt in settlements with clients who have credit cards;
• acquisition and sale of investments;
• other short-term loans, for example those whose repayment period does not exceed 3 months.

Cash flows arising from each of the following types of activities of a financial institution may be presented on an aggregate basis:

• receipts and payments associated with the acceptance (and disbursement) of deposits with a fixed maturity;
• placing (and closing) deposits in other financial institutions;
• advances and loans made to customers (and repayments of such advances and loans).

Indicators of the organization's cash flow statement

Cash— the most liquid category of assets, which provides the organization with the greatest degree of liquidity. In the process of implementing all types of financial and business transactions An organization generates cash flows in the form of cash receipts or expenditures.

The cash flow statement discloses data on cash flows in the reporting period, characterizing the availability, receipt and expenditure of cash in the organization.

The information presented in the form allows internal and external users to assess how the company creates and uses cash, whether there are enough cash to pay off current liabilities and pay dividends, allows them to determine whether the company requires additional financing, etc.

The cash flow statement also provides information about the organization's ability to attract and use cash.

Cash flow statement characterizes changes in the financial position of the organization in the context of current, investment and financial activities.

The formation of this reporting form is regulated by PBU 23/2011 “Cash Flow Report” (Order of the Ministry of Finance dated February 2, 2011 No. II n).

The main source of funds should be current activities. Current activities The activities of an organization are considered to be those that pursue profit-making as the main goal or do not have profit-making as such a goal in accordance with the objects and purposes of the activity, i.e. activities that, in accordance with PBU 9/99 “Income of the organization,” are ordinary (Fig. 5.1).

Rice. 5.1. Channels of receipts and payments for current activities

Investment activities the activities of the organization are considered. related to the acquisition of land, buildings and other real estate, equipment, intangible assets and other non-current assets, as well as their sale; with the implementation of its own construction, expenses for research, development and technological development; with financial investments (purchase of securities of other organizations, including debt, contributions to the authorized (share) capital of other organizations, provision of loans to other organizations, etc.) (Fig. 5.2).

Financial activities- this is the activity of an organization, as a result of which the size and composition of the organization’s equity capital and borrowed funds changes (proceeds from the issue of shares, bonds, loans from other organizations, repayment of borrowed funds, etc.).

Rice. 5.2. Channels of receipts and payments for investment and financial activities

There are two methods of presenting cash flows from current (operating) activities: direct and indirect.

Direct method is based on determining the inflow (revenue from the sale of products, works, services, advances received, etc.) and outflow (payment of supplier bills, return of short-term loans and advances received, etc.) of funds. The initial element of the calculation is revenue from the sale of products.

The direct method of determining cash flows is based on information about all transactions carried out in the reporting period on bank accounts and with cash, grouped in a certain way. The direct method has been approved for use by Russian organizations.

Indirect method common in foreign practice, where when preparing a cash flow statement, operating, investing and financial activities are distinguished.

Operating activities represent cash flows associated with the main activities of the organization, bringing it the main profit.

The indirect method of presenting cash flows from operating activities includes an element of analysis, since it is based on a comparison of changes in various balance sheet items for the reporting period, characterizing the property and financial position of the organization, and also includes an analysis of the movement of fixed assets, their depreciation and other indicators. As a result of applying the indirect method, the final financial result (net profit for the reporting period) is converted into the difference between the amounts of cash available to the organization at the beginning and end of the reporting year.

When drawing up the calculation, it is assumed that transactions are reflected in accounting at the moment of transfer of ownership, regardless of payment. As a result, revenue reported on the income statement is not always equivalent to cash receipts, and expenses reported on the income statement are not equal to expenses paid. As a result, the net profit indicator on the income statement does not reflect the actual availability of funds available to the organization at the reporting date.

Therefore, when preparing a cash flow statement, the net profit indicator is adjusted in the following order:

1. Depreciation of property is added to net profit, since depreciation charges are an expense that forms net profit, but does not lead to an outflow of cash.

2. An adjustment is made to the amount of change in the balances of inventories at the beginning and end of the reporting year. If inventory balances increase, then the difference in balances is deducted from net income, since an increase in inventory leads to an outflow of cash. If inventory decreases, the difference is added.

3. An adjustment is made for the amount of changes in accounts receivable. If accounts receivable decreased at the end of the year, then the difference is added to net profit, otherwise it is subtracted from it.

4. An adjustment is made to the amount of accounts payable. At the same time, an increase in accounts payable leads to an influx of cash, so the difference in accounts payable is added to net profit, otherwise the difference is deducted.

As a result of these adjustments, the amount of net cash flow from operating activities is calculated.

Cash flows from investing and financing activities are determined by the direct method. The difference between the inflow (receipt) and outflow (outflow) of funds is the net cash flow, which is determined for each type of activity. The total net flow for all types of activities is the increase in cash for the reporting period, defined as the difference in cash balances at the beginning and end of the reporting period.

In foreign practice, financial statements disclose information not only about the organization’s cash assets, but also about their equivalents. Under cash equivalents refers to short-term, highly liquid investments that are easily convertible into cash and are subject to an insignificant risk of changes in values.

For the purpose of preparing a cash flow statement in Russia under cash directly refers to money in cash and non-cash form located at the organization’s cash desk, in its settlement, currency and special accounts.

The cash flow report presents data directly resulting from the entries in the cash accounting accounts: 50 “Cash” (except for the balance of subaccount 50-3 “Cash documents”), 51 “Settlement accounts”, 52 “Currency accounts” , 55 “Special accounts in banks” (except for the balance of subaccount 55-3 “Deposit accounts”), 57 “Transfers in transit”.

Information on the movement of funds of the organization on these accounts is reflected on an accrual basis from the beginning of the year and is presented in the currency of the Russian Federation.

In the case of the presence (movement) of funds in foreign currency, information on the movement of foreign currency for each type is initially generated in relation to the cash flow statement adopted by the organization. After this, the data of each calculation made in foreign currency are recalculated at the rate of the Central Bank of the Russian Federation on the date of preparation financial statements. The data obtained for individual calculations is summarized when filling out the corresponding indicators of the cash flow statement.

Cash flow for current activities

The section “Cash flow for current activities” reflects:

Discloses information about amounts received from:

• sales of products, goods, works and services, including advances;
• rental and license payments, fees, commission payments, etc.;
• other income.

To fill out this line, debit turnovers on accounts 50 “Cash”, 51 “Settlement accounts”, 52 “Currency accounts” are used in correspondence with accounts 62 “Settlements with buyers and customers” and 76 “Settlements with various debtors and creditors” (including VAT , excise taxes paid by buyers).

According to the line “Other receipts” show the amounts of cash received that are related to the current activities of the organization and are not indicated in the previous line:

budgetary and targeted funding and revenues:

• Debit of accounts 50 “Cash”, 51 “Settlement accounts”, 52 “Currency accounts” Credit of account 86 “Targeted financing”:

gratuitous receipts:

• Debit of accounts 50 “Cash”, 51 “Settlement accounts”, 52 “Currency accounts” Credit of account 98 “Deferred income” (91 “Other income and expenses”):

refunds from suppliers:

• Debit of accounts 50 “Cash”, 51 “Settlement accounts”, 52 “Currency accounts” Credit of account 60 “Settlements with suppliers and contractors”;

receipts for satisfaction of claims, amounts of insurance compensation, etc.:

• Debit of accounts 50 “Cash”, 51 “Settlement accounts”, 52 “Currency accounts” Credit of account 76 “Settlements with various debtors and creditors”;

return of unused accountable amounts:

• Debit account 50 “Cash” Credit account 71 “Settlements with accountable persons”;

receipts for compensation for material damage, etc.:

• Debit of accounts 50 “Cash”, 51 “Settlement accounts” Credit of account 73 “Settlements with personnel for other transactions”.

1. for payment for goods, works, services:

• Debit accounts 60 “Settlements with suppliers and contractors”, 76 “Settlements with various debtors and creditors” Credit accounts “Cash”, 51 “Settlement accounts”, 52 “Currency accounts”, 55 “Special bank accounts” (including prepayment);

2. for wages:

• Debit of account 70 “Settlements with personnel for wages” Credit of accounts 50 “Cash”, 51 “Settlement accounts”;

3. for payment of interest on debt obligations:

a) dividends paid to the founders;

• Debit of accounts 75 “Settlements with founders”, 70 “Settlements with personnel for wages” Credit of accounts 50 “Cash”, 51 “Settlement accounts”, 52 “Currency accounts”.

The principal amounts of loans and credits that the organization repaid in the reporting year are not shown in this line. They are indicated in the section “Cash flows from financial activities”:

• Debit of accounts 66 “Settlements for short-term loans and borrowings”, 67 “Settlements for long-term loans and borrowings” Credit of accounts 50 “Cash”, 51 “Settlement accounts”, 52 “Currency accounts”;

4. for calculations of taxes and fees:

• Debit of accounts 68 “Calculations for taxes and fees”, 69 “Calculations for social insurance and security” Credit of accounts 50 “Cash”, “Cash accounts” (including the amount of the listed penalties).

For paid contributions for compulsory pension insurance and insurance against industrial accidents and occupational diseases, you can enter an additional line:

• Debit of accounts 69 “Calculations for social insurance and security” Credit of account 51 “Current accounts”;

5. for other payments, transfers:

a) fines, penalties, penalties paid by the organization for violation of the terms of business contracts:

• Debit of account 76 “Settlements with various debtors and creditors” Credit of account 51 “Settlement accounts”;

b) funds issued to accountable persons:

• Debit of account 71 “Settlements with accountable persons” Credit of account 50 “Cash”;

c) loans issued to employees:

• Debit of account 73 “Settlements with personnel for other operations” Credit of account 50 “Cash”, etc.

If there are significant turnovers under the items “Other income” and “Other expenses”, a breakdown should be provided in additional lines of the report.

Results of cash flows from current activities

According to the line “Results of the movement of funds from current activities” reflects the difference between the inflow and outflow of cash from current activities. This difference can be positive or negative. In the second case, the indicator “Results of cash flow from current activities” is reflected in parentheses.

The section “Cash flow from investing activities” reflects:

Indicator “Cash received - total” is formed as the sum of numerical data for the following items:

1. “From the sale of fixed assets and other property.” This line reflects funds received from the sale of equipment, leased items, intangible assets, unfinished construction projects, etc. To fill out the line, use the corresponding turnovers on the debit of cash accounting accounts in correspondence with accounts 62 “Settlements with buyers and customers” and 76 “Settlements with various debtors and creditors”. VAT amounts are not deducted:

2. “Dividends, interest on financial investments” - amounts received from participation in the capital of other organizations (dividends):

• Debit accounts 50 “Cash”, 51 “Settlement accounts”, 52 “Currency accounts” Credit accounts 91 “Other income and expenses”, 16 “Settlements with various debtors and creditors”.

Interest on securities (except for shares), loans, interest accrued by the bank on the cash balance:

• Debit accounts 50 “Cash”, 51 “Cash accounts”, 52 “Currency accounts” Credit accounts 91 “Other income and expenses”, 76 “Settlements with various debtors and creditors”;

3. "Other receipts." This line reflects receipts from:

a) sales of equity and debt securities acquired for a period of more than 12 months (shares, bonds, bills) and other financial investments that are recorded in the debit of accounts 50 “Cash”, 51 “Settlement accounts”, 52 “Currency accounts” in correspondence with accounts 58 “Financial investments”, 62 “Settlements with buyers and customers” and 76 “Settlements with various debtors and creditors”;

b) repayment of loans provided to other organizations:

• Debit of accounts 50 “Cash”, 51 “Cash accounts”, 52 “Currency accounts” Credit of account 58 “Financial investments”.

Line “Cash sent - total” is formed as the sum of numerical data for the following items:

1. “For the acquisition of fixed assets (including profitable investments in tangible assets) and intangible assets).” This line shows the amounts paid to suppliers and contractors for acquired or created non-current assets:

• Debit accounts 60 “Settlements with suppliers and contractors”, 76 “Settlements with various debtors and creditors” Credit accounts 50 “Cash”, 51 “Settlement accounts”, 52 “Currency accounts”, 55 “Special bank accounts” (including prepayment) ;

2. “For financial investments” - This line deciphers the amounts transferred to sellers of securities and other organizations and persons in connection with their acquisition:

• Debit accounts 60 “Settlements with suppliers and contractors”, 76 “Settlements with various debtors and creditors” Credit accounts 50 “Cash”, 51 “Settlement accounts”, 52 “Currency accounts”, 55 “Special accounts in banks”;

3. “For other payments, transfers.” This line may show the amounts transferred to borrowers in accordance with the loan agreement:

• Debit account 58 “Financial investments” Credit account 50 “Cash”, 51 “Cash accounts”.

According to the line “Result of cash flow from investment activities” reflects the difference between the inflow and outflow of funds from investment activities. This difference may be positive And negative. In the second case, the indicator “Result of cash flow from investment activities” is reflected in parentheses.

Cash flow from financing activities

The section “Cash flow from financial activities” reflects:

Indicator “Cash received - total” is formed as the sum of numerical data for the following items:

1. "Credits and loans" - amounts received from creditors under agreements (loan, credit) excluding accrued interest. Interest amounts are reflected as part of operations for current or investment activities, depending on the purpose of attracting borrowed sources:

• Debit of accounts 51 “Currency accounts”, 52 “Currency accounts” Credit of accounts 66 “Settlements for short-term loans and borrowings”, 67 “Settlements for long-term loans and borrowings”;

2. “Budget allocations and other targeted financing”— the amounts of budget and targeted funding are indicated;

3. "Contributions of participants" - amounts received from shareholders (founders) as a result of placement of their own equity securities:

• Debit of accounts 50 “Cash”, 51 “Settlement accounts”, 52 “Currency accounts” Credit of account 75 “Settlements with founders” (81 “Own shares (shares)”);

4. "Other receipts" - amounts of income from financial activities that are not reflected in the listed lines.

Indicator “Funds sent - total” is formed as the sum of numerical data for the following items:

1. “For repayment of loans and borrowings” - funds transferred to repay the principal debt on borrowed funds (excluding interest):

• Debit of accounts 66 “Settlements for short-term loans and borrowings”, 67 “Settlements for long-term loans and borrowings” Credit of accounts 51 “Settlement accounts”, 52 “Currency accounts”;

2. "For payment of dividends" - This line shows the amounts of dividends paid to the company's participants:

3. “For other payments, transfers” - This line can show the amounts of lease payments transferred to the lessor:

• Debit of account 76 “Settlements with various debtors and creditors” Credit of accounts 51 “Settlement accounts”, 52 “Currency accounts”, 55 “Special accounts in banks”.

According to the line “Result of cash flows from financial activities” reflects the difference between the inflow and outflow of funds from financial activities. This difference may be positive And negative. In the second case, the indicator “Result of cash flow from financing activities” is reflected in parentheses.

Indicator “Result of cash flow for the reporting period” is the algebraic sum of indicators of cash flow results for the reporting period for all types of activities. He may also have positive or negative value.

The cash flow statement shows the total cash balance for all types of activities at the beginning of the reporting period ( line “Cash balance at the beginning of the reporting year”).

Cash balance at the end of the reporting period is calculated by adjusting (increasing or decreasing) the cash balance at the beginning of the reporting period by the amount of the result of cash flow for the reporting period.

Information on cash flows is provided in the statements for at least two years (reporting and previous).

Questions:

1. Purpose of the cash flow statement.

2.Direct and indirect methods of presenting cash flows.

Literature:

Main

Accounting (financial) reporting /Edited by prof. . M., INFRA-M, 2003, chapter 4.

1. Purpose of the cash flow statement

The cash flow statement describes changes in the financial position of the organization. It discloses information about the organization’s cash flows, shows the sources of cash receipts and directions for their expenditure.

The report contains information that is of interest to both owners and creditors. Owners, having information about cash flows, have the opportunity to more reasonably approach the development of a policy for the distribution and use of profits. Lenders can form an opinion about a potential borrower's funds adequacy and ability to generate the cash needed to repay obligations.

The main purpose of such a report is to provide users with information about the organization's ability to create funds in the amount and time frame necessary to meet planned expenses.

The cash flow statement is prepared annually, but an organization can also present it as part of interim financial statements.

To prepare the report, you must have a clear understanding of the key terms that characterize cash and cash equivalents, cash flows (cash flows), net cash flow, current, investing and financing activities.

Cash- include money on hand and those funds in bank accounts (banks) that the organization can freely dispose of. Information about funds frozen in the organization’s accounts, or other funds that the organization cannot dispose of on its own, is disclosed in the appendices to the report in order to ensure mutual coordination of this report and the balance sheet, reflecting the full amount of the organization’s funds.

Cash equivalents- highly liquid investments that have a short circulation period and can be converted into cash without a significant loss in amount.

The indicators of the Cash Flow Statement are reflected in the context of three types of activities of the organization (current, investment, financial).

Current activities - the main activity aimed at generating income, as well as other activities of the organization that do not relate to investment and financial activities;

Investment activities - activities related to the acquisition (creation) of fixed assets, the acquisition of intangible assets, the implementation of long-term financial investments, as well as the sale of long-term (non-current) assets;

Financial activities- activities leading to changes in the organization’s own and borrowed capital as a result of raising funds, with the exception of accounts payable.

("1") Cash flows from current activities. The significance of the section of the report that reflects cash flows from current activities is determined by the fact that it discloses information about the organization’s main receipts and payments. Therefore, when using cash flow statement information, the key indicator is net cash flow (the net result of receipts and payments) from current activities. Based on data on the magnitude and dynamics this indicator when combined with other information, conclusions can be drawn regarding the entity's ability to generate cash from its ordinary activities in the amount and timing necessary to settle its obligations and undertake investing activities.

That is why in the report it is important to separate the funds created as a result of current activities from funds attracted from outside in the form of loans, additional deposits from owners, etc.

Cash flows from current activities are, as a rule, the result of business transactions that affect the determination of the organization's net profit (loss). These include:

a) cash receipts from the sale of products, performance of work and provision of services, as well as in the form of advances from buyers and customers;

b) rental income;

c) other receipts, including refunds from suppliers; from the budget; from accountable persons; proceeds from insurance companies, commissions, amounts received from court decisions and other proceeds.

d) cash payments to suppliers and other counterparties,

b) cash receipts from the sale of equity and debt securities of other organizations,

c) repayment of loans provided to organizations for a period of more than 12 months;

("2") d) return of funds related to concluded simple partnership agreements; other similar income;

e) funds received in the form of dividends received from participation in the capital of other organizations;

f) funds allocated for the acquisition (creation) of non-current assets, including capital investments that increase the value of fixed assets and intangible assets;

g) long-term financial investments.

The fixed assets put into operation may include objects whose creation (construction) costs were incurred both in the reporting period and in previous periods. Since these expenses were accompanied by cash outflows in earlier periods, they should be excluded from the calculation of net cash flow from investing activities for the reporting period.

Cash flows from financing activities. The section of the report characterizing cash flows from financial activities reflects the inflows and outflows of cash associated with the use of external financing (own and borrowed).

Changes in equity considered as part of financing activities are usually represented by cash proceeds from the issue of shares, as well as share premium received. The change in equity as a result of net profit received (loss incurred) is not taken into account as part of financial activities, since expenses and income associated with the formation of the financial result are reflected in current activities.

Cash flows from financing activities are:

a) cash receipts from the issue of shares and other equity instruments, as well as additional investments of owners;

b) proceeds from the issue of bonds, loans, long-term and short-term loans;

c) targeted funding and revenues.

d) transfer of funds to repay the principal amount of debt on received loans and borrowings;

e) funds used to repurchase own shares.

It is important to keep in mind that the procedure for drawing up a cash flow statement in international practice and the currently valid Form No. 4, which has the same name, are significantly different.

The most significant discrepancies are related to the division of cash flows by individual types of activities. In the current Form No. 4, financial activity is reduced to the movement of cash as a result of short-term financial investments: the issuance of bonds and other short-term securities, the disposal of shares previously acquired for a period of up to 12 months and other transactions recorded in the “Financial Investments” account. This approach violates the reporting requirement laid down in IFRS (as well as contained in US GAAP), according to which financial activities are considered as external financing. From the standpoint of the possibility of using the report for the purpose of forecasting cash flows, compliance with this requirement is important, since it allows you to separate the net cash flow that was created as a result of the organization’s current activities from the result of raising funds from owners or lenders.

There are other differences between form No. 4 and the cash flow statement recommended by IFRS. Thus, one of the criteria for classifying an item as current activity is its participation in the formation of income and expenses from core activities. According to this approach, such an item as wages of employees, being an integral element of cost, should be included in current activities. In Form No. 4, this item is included only in the overall total for all types of activities, as a result of which the amount of payments for current activities is underestimated, and the amount of net cash flow is correspondingly overestimated.

Another difference is that under IFRS (as well as US GAAP), movements between individual items of cash and cash equivalents are considered as a means of managing them and are therefore not included in the calculation of cash outflows and inflows. Drawing up f. No. 4 does not provide for the complete exclusion of internal cash flow, which significantly reduces its analyticality.

2.Direct and indirect methods of presenting cash flows

An entity may present cash flows from operating activities using the direct and indirect methods. When presenting information about current activities using the direct method, the report reflects gross cash receipts and payments.

When presenting information about current activities using the indirect method, the current activities section reflects the net financial result of the organization (net profit or loss) and its necessary adjustments, allowing you to move from the value of the net financial result to the value of net cash flow from current activities for the period. To do this, the net financial result is adjusted taking into account the results of non-cash transactions, transactions related to the disposal of long-term assets, by the amount of changes in current assets and short-term liabilities.

(“3”) It is recommended to use the net profit (retained profit (loss)) of the reporting period, reflected in the income statement, as the net financial result for the purpose of reporting using the indirect method.

There are the following ways to present cash flows from operating activities using the direct method:

a) based on the organization’s records;

b) by adjusting the amount of revenue from the sale of goods, products, works, services, the cost of goods sold, products, works, services and other items of the profit and loss statement, taking into account the following:

changes in inventory items, current receivables and payables that took place during the reporting period;

non-monetary transactions;

other transactions that generate cash flows from investing or financing activities.

The first of these methods involves the use of accounting data on turnover by cash items. At the same time, the movement between individual items of cash and their equivalents is considered not as a movement of funds, but as a way of managing them. Therefore, such a movement is excluded from the calculation of the organization's receipts and payments. This approach to reflecting information on cash flows corresponds to the target orientation of the Report: to provide users of financial statements with information on the amount of financial flows coming in and going out in the process of the organization carrying out its operations.

For example, internal movement of funds from a current account to a foreign currency account and vice versa are not considered as inflows (outflows) of funds reflected in the Report.

The second method is based on adjustments to items in the income statement, allowing you to move from items of income and expenses to items of gross receipts and payments. For example, in order to obtain the absolute amount of cash receipts from customers in the reporting period, the amount of revenue from the sale of goods, products, works, and services must be adjusted by the amount of changes in the balances of accounts receivable from buyers and customers. If, for example, the sales volume for the period amounted to 700 thousand rubles, the accounts receivable from customers at the beginning of the period were 150 thousand rubles, at the end of the period - 250 thousand rubles, then the amount of receipts from customers would be 600 thousand rubles. (500 + 150 – 250).

Direct use of this method of reporting according to Russian financial statements is difficult, in particular because the income statement shows net revenue (net of value added tax), while in the balance sheet the receivables of buyers include what is due from buyers VAT.

The same adjustments should be made for expense items in order to eliminate discrepancies between the amount of expenses recorded in the income statement and the actual expenditure of funds.

The report compiled by the direct method can be presented in the form of the following table.

Statement of Cash Flows (Direct Method)

(“4”) Unlike the direct method, which discloses information about gross receipts and payments, i.e., using accounting data on cash flows, the indirect method of presenting information about cash flows from current activities considers not only cash items, but also all other items of assets and liabilities, changes in which affect the financial flows of the organization.

Net cash flow from current activities is presented in a report prepared by the indirect method, as a result of the use of all economic resources of the organization, which makes it possible to evaluate management decisions related to cash flows, first of all, regarding the correspondence of the net financial result and cash resources, as well as the sufficiency of the received profits to make planned payments.

Net cash flow differs from the amount of the financial result obtained for a number of reasons:

The financial result reflected in the income statement is formed in accordance with the assumption of temporary certainty of the facts of economic activity (expenses and income are recognized in the accounting period in which they were accrued, regardless of the actual cash flow):

The presence of deferred expenses leads to the fact that the actual amount of payments differs from the cost of production;

Expenses accrued in the reporting period, accompanied by the emergence of accounts payable, increase the cost without changing the amount of funds of the organization;

The acquisition of long-term assets and the associated cash outflow are not reflected in the financial result;

The amount of financial results is influenced by expenses that are not accompanied by an outflow of cash, for example, depreciation of fixed assets and intangible assets;

The source of an increase in funds is not necessarily profit (for example, the influx of funds can be ensured by raising them on a borrowed basis). Likewise, cash outflows are not always associated with a decrease in financial performance;

The discrepancy between the financial result and net cash flow is affected by changes in items of current assets and short-term liabilities.

To eliminate these discrepancies in the formation of the net financial result and net cash flow when determining net cash flow from current activities, adjustments are made to net profit or loss taking into account:

a) changes in inventories, current accounts receivable, short-term financial investments, short-term liabilities, excluding loans and credits, during the period;

b) non-monetary items: depreciation of non-current assets; exchange rate differences; profit (loss) of previous years identified in the reporting period; written off receivables (payables); accrued but unpaid income from participation in other organizations and others;

c) other items accompanied by the emergence of cash flows from investing or financing activities.

For methodological purposes, a certain sequence of such adjustments can be identified.

On first stage, the impact on the net financial result of non-monetary transactions is eliminated.

Accounting operations for calculating depreciation consist, as is known, of assigning a share of depreciation charges to the cost of production. Since the decrease in financial result as a result of these transactions is not accompanied by a decrease in cash, the amount of depreciation accrued over the period of long-term assets must be added to the financial result to determine net cash flow.

Disposals of long-term assets also affect the final financial result, which is the initial basis for calculating net cash flow from current activities. At the same time, sales operations of non-current assets are considered as part of investment activities. To avoid double counting of the impact of the same transaction on cash flows, the positive result of the disposal of long-term assets, i.e., profit, when calculating net cash flow from current activities, should be shown with a minus sign, the negative result, i.e. loss - with a plus sign.

Adjustments that eliminate the impact of other “non-cash” transactions on the final financial result, depending on the nature of their impact, increase or decrease the result, i.e., they consist of including in the calculation of net cash flow from current activities the amount of such transactions, respectively, with a minus sign or with a plus sign.

("5") On second stage, adjustment procedures are carried out taking into account changes in the items of current assets and short-term liabilities. A specific calculation involves assessing changes in each item of current assets (excluding cash items) and short-term liabilities.

The purpose of making adjustments is to show which items of current assets and short-term liabilities accounted for the change in the amount of cash at the end of the reporting period compared to its beginning.

An increase in items of current assets is characterized by the use of funds and, therefore, is regarded as an outflow of funds. A decrease in items of current assets is characterized by the release of funds and is regarded as an influx of cash.

For example, if during the reporting period the receivables from customers increased, it is concluded that the receipt of funds was less than that recorded in the form of revenue in the income statement by the amount of the increase in receivables. Therefore, to calculate net cash flow from current activities, the increase in accounts receivable for the period must be shown in the Report with a minus sign.

On the contrary, a decrease in accounts receivable means the excess of the receipt of cash (or other means of payment) over the revenue reflected in the income statement. Therefore, to calculate net cash flow from operating activities, the reduction in accounts receivable for the period must be shown in the Statement with a “plus” sign.

The impact on the financial result of transactions related to the acquisition of inventory items is characterized by the fact that an increase in their balances on the balance sheet characterizes the use of funds or their outflow. Accordingly, the amount of reduction in balances for these items means the release of funds or their influx.

For transactions reflected in passive accounts, the mechanism of influence on cash flow is the opposite. An increase in balances of short-term liabilities indicates that most of the assets and expenses incurred remain unpaid. In this case, there is an influx of funds. Consequently, when calculating net cash flow from current activities, the increase in items of short-term liabilities is shown with a “plus” sign. Conversely, a reduction in debt to creditors means an outflow of funds - it is shown in the Report with a minus sign.

Changes in the items “Reserves for future expenses and payments” and “Deferred income” are taken into account in the mechanism of adjustment procedures in the general manner for current liabilities.

As a general conclusion, the following algorithm can be formulated: when calculating net cash flow from current activities, an increase in items of current assets should be shown in the report with a “minus” sign, a decrease – with a “plus” sign; an increase in balances on items of short-term liabilities should be shown in the report with a “plus” sign, a decrease – with a “minus” sign.

The cumulative impact of the considered procedures that adjust the value of the net financial result should lead to the determination of net cash flow from current activities.

A report compiled by the indirect method can be presented in the form of the following table.

Cash flow statement (indirect method)

(“6”) When preparing the report, information on cash flows from investing and financing activities should be separately disclosed in the form of amounts of gross receipts and payments.

Regardless of the method by which cash flows from current activities were presented in the report, cash flows from investing and financing activities are reflected using the direct method. Thus, differences in reporting methods are determined by the presentation of information about cash flows from current activities. This allows us to speak in general about two methods of reporting: direct and indirect.

By Order of the Ministry of Finance of the Russian Federation dated July 22, 2003 No. 67n, significant changes were made to the structure of the Cash Flow Statement. The new sample form No. 4 does not have a graphical arrangement of activities. Columns 3 and 4 reflect data for the reporting year and for the same period of the previous year, respectively.

Form No. 4 begins with the indicator “Cash balance at the beginning of the reporting year”, and ends with the indicator “Cash balance at the end of the reporting period”. All other indicators characterizing cash receipts and payments are combined into three subsections:

Cash flow for current activities;

Cash flow from investment activities;

Cash flow from financing activities.

This grouping of cash flows allows us to reflect the impact of each of the three areas of the organization’s activities on cash. Their combined effect on cash determines the net change for the period, which is reconciled with the opening and closing cash balances.

The Instructions on the procedure for drawing up and presenting financial statements, approved by Order of the Ministry of Finance of the Russian Federation No. 67n, give the concept of current, investment and financial activities.

Many activities have an impact on cash and are therefore included in appropriate sections of the statement of cash flows. However, some transactions related to operating, investing and financing activities do not affect cash flow. An example of non-monetary investment and financial transactions is the issue of shares or bonds in exchange for tangible and intangible non-current assets or the exchange of one non-current asset for another. In Russian practice, non-monetary transactions are represented by barter, related to current activities. This type of non-cash transactions in a non-payment crisis sometimes reaches up to 90% of turnover. This is why proper disclosure of non-cash transactions (especially barter) is important for compiling and analyzing cash flow statement metrics.

In general, non-cash investing and financing transactions affect future cash flows. Issuing bonds requires cash payments of principal

and interest on such bonds in the future.

Information on non-cash transactions should be presented in a separate table, which may be included in an appendix to the financial statements.

Currently Russian system accounting does not require the provision of information on non-monetary investment and financial transactions and on current activities, but this is a basic requirement international standards financial statements.

In the new sample of form No. 4, each section first reflects indicators characterizing the receipt of funds, and then their expenditure. Information on the expenditure of funds is reflected in Form No. 4 in parentheses.

Below are possible sources of income and directions of expenditure of funds for current, investment and financial activities:

(“7”) At the end of each subsection the indicator “Net cash” is given. It is defined as the difference between total receipts and total disbursements for each activity. If the total amount of money spent for the corresponding type of activity is greater than the total amount of money received for the same type of activity, then the amount received is reflected in the Cash Flow Statement in parentheses.

Information on the organization's cash flow is reflected in Form No. 4 in the currency of the Russian Federation. If the organization had operations related to the movement of foreign currency, then the organization must draw up a calculation in relation to the sample cash flow statement approved by the organization for each type of foreign currency. After this, the data for each calculation must be recalculated at the exchange rate of the Central Bank of the Russian Federation as of the date of preparation of the financial statements. The data obtained for individual calculations are summarized when filling out the corresponding indicators of form No. 4.

The final indicator “Net increase (decrease) in cash and cash equivalents” is determined by summing the indicators “Net cash from current activities”, “Net cash from investing activities”, “Net cash from financing activities” of all three subsections of Form No. 4.

The indicators of form No. 4 “Cash Flow Statement” are filled out on the basis of analytical data for accounts 50 “Cash Office”, 51 “Cash Accounts”, 52 “Currency Accounts”, 55 “Special Bank Accounts”, which are contained in the relevant registers. The report in Form No. 4 is prepared using the direct method indicating all cash flows.

Lines "Cash balance at the beginning of the reporting year" And "Cash balance at the end of the reporting period" are filled in according to account balances 50, 51, 52, 55 at the beginning of the year. Information on these lines must correspond to line 260 “Cash” of the balance sheet (in columns 3 and 4, respectively).

The total change in cash according to the balance sheet (column 4, line 260 minus column 3, line 260) must correspond to the amount of the indicator “Net increase (decrease) in cash and cash equivalents” in the Cash Flow Statement (column 3).