Fund Accounting Training
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Fund Accounting Training: Glossary
GLOSSARY Advance A type of internal borrowing (temporary or long term) between fund groups for which a due to/from must be set up. Agency funds Resources held by the institution as custodian or agent for students, faculty or staff, and organizations. No institutional equity in these funds. AICPA American Institute of Certified Public Accountants Annuity funds Funds established through a deferred giving contract. Payments to beneficiaries include both interest and a portion of principal. Upon the beneficiaries’ death, the funds revert to the agency. Auxiliary enterprise An entity that exists to furnish a service to students, faculty, or staff and charges a fee directly related to although not necessarily equal to the cost of the service; managed as essentially self‐supporting. Balance Sheet Financial statement reflecting self‐balancing classification of each fund group, including assets, liabilities, and fund balances. Board of Regents A group of persons, appointed by the Governor, whose powers are described in the charter or some legislative act that establishes the legal identity of the institution. Also, the governing board. Bond covenant Agreement between bondholders and the issuer, representing the board action that issued the bonds and setting forth related terms and conditions. Book value method Distribution of income among funds in an investment pool by book value of the funds. Capital asset Asset intended for long‐term, continued use or possession, such as land, buildings, and equipment. Synonymous with fixed asset or capital addition. Capital expenditure Expenditure intended to benefit future periods; addition to a capital asset. Capitalization policy Statement of criteria to determine which assets will be expended or recorded as capital assets. -
Webinar Small Business Playbook for Effective Cash Flow Forecasting Pretty Books Learning Lab 2 03/2020
Webinar Small Business Playbook for Effective Cash Flow Forecasting Pretty Books Learning Lab 2 03/2020 Learning Lab Playbook // Cash flow management is vital to all companies, big or small. Establishing good Small Business cash flow forecasting practices provides you with clarity into your money and lets Playbook for Effective you stay ahead of the game. In this learning lab, you will learn the playbook for Cash Flow Forecasting managing cash flow forecasting. Pretty Books Before we begin. 3 03/2020 • Presentation is about 10 minutes. • Email questions after the webinar to: [email protected] • Free 30-Min Office Hour available . • Presentation will be emailed to you. • Cash Flow tool kit is available for download on the resources page of our website. Pretty Books Agenda 4 03/2020 Introduction The Financial ‘Fog‘? The Playbook Summary Questions & Answers Pretty Books Cash flow amidst uncertainty. 5 03/2020 01 How much money do I have? You are required to look Where did my money go? ahead to make decisions 02 now, however, looking out is not so easy. There are 03 How much money do I need? always more questions. Nothing is definite. 04 How long will my money last? Pretty Books Clear the fog! Know your numbers. 6 03/2020 Clear the fog! Know your numbers, get clear with your financials. // Clear the fog! Clearing the ‘fog‘ is something every business does, big or small, crisis or not. This is because the interplay of profit, cash in bank and investment is dynamic. Your goal is to clear out as much of this ‘fog‘ as possible, letting you plan better and make more informed decisions. -
14. Calculating Total Cash Flows
Chapter 2 Lecture Problems 14. Calculating Total Cash Flows. Greene Co. shows the following information on its 2008 income statement: Sales = $138,000 Costs = $71,500 Other expenses = $4,100 Depreciation expense = $10,100 Interest expense = $7,900 Taxes = $17,760 Dividends = $5,400. In addition, you're told that the firm issued $2,500 in new equity during 2008, and redeemed $3,800 in outstanding long-term debt. a. What is the 2008 operating cash flow? b. What is the 2008 cash flow to creditors? c. What is the 2008 cash flow to stockholders? d. If net fixed assets increased by $17,400 during the year, what was the addition to NWC? a. To calculate the OCF, we first need to construct an income statement. The income statement starts with revenues and subtracts costs to arrive at EBIT. We then subtract out interest to get taxable income, and then subtract taxes to arrive at net income. Doing so, we get: Income Statement Sales $138,000 Costs 71,500 Other Expenses 4,100 Depreciation 10,100 EBIT $52,300 Interest 7,900 Taxable income $44,400 Taxes 17,760 Net income $26,640 Dividends $5,400 Addition to retained earnings 21,240 Page 1 Chapter 2 Lecture Problems Dividends paid plus addition to retained earnings must equal net income, so: Net income = Dividends + Addition to retained earnings Addition to retained earnings = $26,640 – 5,400 Addition to retained earnings = $21,240 So, the operating cash flow is: OCF = EBIT + Depreciation – Taxes OCF = $52,300 + 10,100 – 17,760 OCF = $44,640 b. -
Preparing a Short-Term Cash Flow Forecast
Preparing a short-term What is a short-term cash How does a short-term cash flow forecast and why is it flow forecast differ from a cash flow forecast important? budget or business plan? 27 April 2020 The COVID-19 crisis has brought the importance of cash flow A short-term cash flow forecast is a forecast of the The income statement or profit and loss account forecasting and management into sharp focus for businesses. cash you have, the cash you expect to receive and in a budget or business plan includes non-cash the cash you expect to pay out of your business over accounting items such as depreciation and accruals This document explores the importance of forecasting, explains a certain period, typically 13 weeks. Fundamentally, for various expenses. The forecast cash flow how it differs from a budget or business plan and offers it’s about having good enough information to give statement contained in these plans is derived from practical tips for preparing a short-term cash flow forecast. you time and money to make the right business the forecast income statement and balance sheet decisions. on an indirect basis and shows the broad categories You can also access this information in podcast form here. of where cash is generated and where cash is spent. Forecasts are important because: They are produced on a monthly or quarterly basis. • They provide visibility of your future cash position In contrast, a short-term cash flow forecast: and highlight if and when your cash position is going to be tight. -
Illustrative IFRS Financial Statements 2019 – Investment Funds
Illustrative IFRS financial statements 2019 Investment funds Stay informed. Visit inform.pw c.com Illustrative IFRS financial statements 2019 – Investment funds Illustrative IFRS financial statements 2019 – Investment funds This publication provides an illustrative set of financial statements, prepared in accordance with International Financial Reporting Standards (IFRS), for a fictional open-ended investment fund (‘ABC Fund’ or the ‘Fund’). ABC Fund is an existing preparer of IFRS financial statements; IFRS 1, ‘First-time adoption of IFRS’, is not applicable. It does not have any subsidiaries, associates or joint ventures. The Fund’s shares are not traded in a public market. Guidance on financial statements for first-time adopters of IFRS is available at www.pwc.com/ifrs. This publication is based on the requirements of IFRS standards and interpretations for the financial year beginning on 1 January 2019. There are no standards effective for the first time in 2019 that required changes to the disclosures or accounting policies in this publication. However, readers should consider whether any of the standards that are mandatory for the first time for financial years beginning 1 January 2019 could affect their own accounting policies. Appendix XII contains a full list of these standards (including those that have only a disclosure impact) as well as a summary of their key requirements. In compiling the illustrative disclosures, we have updated the guidance included in Appendix VIII to address IFRIC 23 ‘Uncertainty over income tax treatments’ which is applicable for financial years beginning on or after 1 January 2019. Commentary boxes are included throughout the publication to provide additional information where necessary. -
Consolidated Financial Statements 2019
CONSOLIDATED FINANCIAL STATEMENTS 2019 Contents Consolidated Financial Statements The Board of Directors' and CEO's Report 1 14 Property, plant and equipment 41 Independent Auditor's report 7 15 Right of use assets 43 Consolidated Statement of Income 11 16 Goodwill 44 Consolidated Statement of Comprehensive Income 12 17 Intangible assets 46 Consolidated Statement of Financial Position 13 18 Investments in associates 47 Consolidated Statement of Changes in Equity 14 19 Trade receivables, other receivables and Consolidated Statement of Cash Flows 15 prepayments 48 Notes to the Consolidated Financial Statements 16 20 Deferred income tax 49 1 General information 16 21 Inventories 51 2 Summary of significant accounting policies 17 22 Equity 52 3 Critical accounting estimates and 23 Borrowings and lease liabilities 56 assumptions 31 24 Provisions 61 4 Business combinations 32 25 Post-employment benefits 62 5 Non-IFRS measurement 34 26 Financial instruments and risks 62 6 Segment information 35 27 Trade and other payables 68 7 Revenues 37 28 Contingencies 69 8 Expenses by nature 38 29 Related party transactions and information on 9 Net finance costs 38 remuneration 70 10 Staff costs 38 30 Subsequent events 71 11 Fees to Auditors 39 31 Subsidiaries 72 12 Income tax 39 32 Quarterly results (unaudited) 73 13 Earnings per share 40 33 Definitions and abbreviations 75 The Board of Directors' and CEO's Report Marel is a leading global provider of advanced utilization levels the interest and finance cost is processing equipment, systems, software and expected to decrease as the new facility includes services to the poultry, meat and fish industries with more favorable terms. -
Sinclair Broadcast Group Reports Record 1St Quarter Revenue and Broadcast Cash Flow; Pro Forma BCF up 7%, ATCF Per Share up 35%
Sinclair Broadcast Group Reports Record 1st Quarter Revenue and Broadcast Cash Flow; Pro Forma BCF Up 7%, ATCF Per Share Up 35% BALTIMORE, April 30 /PRNewswire/ -- Sinclair Broadcast Group, Inc. (Nasdaq: SBGI) (the "Company") reported today its financial results for the three months ended March 31, 1997. Total revenues increased to $108.2 million for the three months ended March 31, 1997, from $47.8 million for the three months ended March 31, 1996, or 126.4%. These increases in broadcast revenues were primarily the result of acquisitions consummated by the Company during 1996 (collectively, the "Acquisitions"), and growth in television broadcast revenue. The Super Bowl on FOX was a significant driver of revenue during the quarter. Broadcast cash flow increased to $42.8 million for the three months ended March 31, 1997, from $22.8 million for the three months ended March 31, 1996,or 87.7%. The increase in broadcast cash flow for the three months ended March 31, 1997, as compared to the three months ended March 31, 1996, resulted primarily from the Acquisitions and growth in television broadcast cash flow. Operating cash flow increased to $39.3 million for the three months ended March 31, 1997, from $21.5 million for the three months ended March 31, 1996, or 82.8%. The increases in operating cash flow for the three months ended March 31, 1997, as compared to the three months ended March 31, 1996, resulted primarily from the Acquisitions and growth in television broadcast cash flow. After tax cash flow increased to $19.5 million for the three months ended March 31, 1997, from $13.0 million for the three months ended March 31, 1996, or 50.0%. -
COVID-19 Managing Cash Flow During a Period of Crisis
COVID-19: Managing cash flow during a period of crisis COVID-19 Managing cash flow during a period of crisis i COVID-19: Managing cash flow during a period of crisis ii COVID-19: Managing cash flow during a period of crisis As a typical “black swan” event, COVID-19 took the world by complete surprise. This newly identified coronavirus was first seen in Wuhan, the capital of Hubei province in central China, on December 31, 2019. As we enter March 2020, the virus has infected over 90,000 people, and led to more than 3,000 deaths. More importantly, more than 75 countries are now reporting positive cases of COVID-19 as the virus spreads globally, impacting communities, ecosystems, and supply chains far beyond China. The focus of most businesses is now on protecting employees, understanding the risks to their business, and managing the supply chain disruptions caused by the efforts to contain the spread of COVID-19. The full impact of this epidemic on businesses and supply chains is still unknown, with the most optimistic forecasts predicting that normalcy in China may return by April,1 with a full global recovery lagging depending on how other geographies are ultimately affected by the virus. However, one thing is certain: this event will have global economic and financial ramifications that will be felt throughout global supply chains, from raw materials to finished products. Our recent report, COVID-19: Managing supply chain risk and disruption, provided 25 recommendations for companies that have business relationships and supply chain flows to and/or from China and other impacted geographies. -
Cash Flow BCAS 18: Cash Flow
BANGLADESH COST ACCOUNTING STANDARDS BCAS - 18 Cash Flow BCAS 18: Cash Flow BCAS 18: Cash Flow 18.1 Introduction Cash flow in a company is a very important issue from managerial perspective. Forecasting cash flows are very important for decision making purposes. Reporting cash flow related information for internal decision making process receives extra attention along with external reporting. At the same time, management of cash flows on a regular basis is an important task of treasury now-a- days. The firms need to maintain a delicate balance between holding too much cash resulting into sacrifice of profitable investment opportunities and too little cash triggering unnecessary borrowing to support daily transactions. The purpose of this standard is to consider issues in developing and using cash flow information from a forward looking perspective. Sometimes it has been observed that in spite of adequate profit in business, they are unable to meet their taxes and dividends, just because of shortage of cash. Improving cash flow is a smart move for any business. It does not matter how great the business model is, how profitable it is, or how many investors the business has lined up. The business cannot survive if it fails to manage its cash properly. Given these trends, it is becoming increasingly important that cash flow information be prepared in a consistent and reliable manner. 18.2 Objectives The standard provides a basic guideline on forecasting cash inflows and outflows, reporting of cash flow related information, analyzing cash flow data and using cash flow data in different typical situations. The standard also highlights the importance of generating accurate cash flow information timely which is very important for cash flow management. -
VALUE IFRS Plc Illustrative IFRS Consolidated Financial Statements December 2019
VALUE IFRS Plc Illustrative IFRS consolidated financial statements December 2019 This publication presents the sample annual financial reports of a fictional listed company, VALUE IFRS Plc. It illustrates the financial reporting requirements that would apply to such a company under International Financial Reporting Standards as issued at 31 May 2019. Supporting commentary is also provided. For the purposes of this publication, VALUE IFRS Plc is listed on a fictive Stock Exchange and is the parent entity in a consolidated entity. VALUE IFRS Plc 2019 is for illustrative purposes only and should be used in conjunction with the relevant financial reporting standards and any other reporting pronouncements and legislation applicable in specific jurisdictions. Global Accounting Consulting Services PricewaterhouseCoopers LLP This content is for general information purposes only, and should not be used as a substitute for consultation with professional advisors. About PwC At PwC, our purpose is to build trust in society and solve important problems. We're a network of firms in 158 countries with more than 250,000 people who are committed to delivering quality in assurance, advisory and tax services. Find out more and tell us what matters to you by visiting us at www.pwc.com © 2019 PwC. All rights reserved. PwC refers to the PwC network and/or one or more of its member firms, each of which is a separate legal entity. Please see www.pwc.com/structure for further details. VALUE IFRS Plc Illustrative IFRS consolidated financial statements December -
FINANCIAL STATEMENTS by Michael J
CHAPTER 7 FINANCIAL STATEMENTS by Michael J. Buckle, PhD, James Seaton, PhD, and Stephen Thomas, PhD LEARNING OUTCOMES After completing this chapter, you should be able to do the following: a Describe the roles of standard setters, regulators, and auditors in finan- cial reporting; b Describe information provided by the balance sheet; c Compare types of assets, liabilities, and equity; d Describe information provided by the income statement; e Distinguish between profit and net cash flow; f Describe information provided by the cash flow statement; g Identify and compare cash flow classifications of operating, investing, and financing activities; h Explain links between the income statement, balance sheet, and cash flow statement; i Explain the usefulness of ratio analysis for financial statements; j Identify and interpret ratios used to analyse a company’s liquidity, profit- ability, financing, shareholder return, and shareholder value. Introduction 195 INTRODUCTION 1 The financial performance of a company matters to many different people. Management is interested in assessing the success of its plans relative to its past and forecasted performance and relative to its competitors’ performance. Employees care because the company’s financial success affects their job security and compensation. The company’s financial performance matters to investors because it affects the returns on their investments. Tax authorities are interested as well because they may tax the company’s profits. An investment analyst will scrutinise a company’s performance and then make recommendations to clients about whether to buy or sell the securities, such as shares of stocks and bonds, issued by that company. One way to begin to evaluate a company is to look at its past performance. -
Clearing up Confusion Over Calculation of Free Cash Flow
Clearing Up Confusion Over Calculation of Free Cash Flow Dr. Howard Keen, Assistant Professor of Finance, Temple University, USA ABSTRACT This paper addresses student confusion over the calculation of the key valuation measure of free cash flow. Confusion is shown to arise from the measure used to represent capital expenditures and from the treatment of depreciation expense. Even for students who have had a full complement of undergraduate finance courses, the former is clearly a point of confusion for many students and its handling has important implications for the latter. This paper illustrates the lack of clarity and consistency in standard textbook treatment of this issue, provides evidence of resulting student confusion and offers clear and easy-to-understand guidelines for students to follow to help avoid that confusion. By adhering to the guidelines presented, even beginning students should be better able to navigate through what can appear to be mystifying presentations of how to incorporate capital spending and depreciation into the computation of a firm’s free cash flow. INTRODUCTION The motivation for this paper was born out of the teaching of the Finance Capstone course to senior Finance majors at Temple University. The paper focuses on the confusing treatment of the key components of capital expenditures and depreciation within the context of deriving free cash flow (FCF). A review of representative corporate finance textbooks reveals a glaring lack of clarity and consistency in the presentation of the use of gross or net fixed assets to derive ―capital expenditures‖ and in the separate explicit inclusion of depreciation. The question of whether capital expenditures is represented by a change in gross or net fixed assets is clearly a point of confusion for many students, even those who have had the full complement of undergraduate finance courses.