Re‐orienting the Statement of Cash Flows Around Cash Flows to Equity Holders

Subject. The article investigates key figures disclosed in consolidated cash flow statements of 25 leading publicly traded oil and gas companies from 2006 to 2018. Objectives. The focus is on determining the current level of values of the main components of consolidated statement of cash flows prepared by leading publicly traded oil and gas companies, identifying key trends within the studied period and factors that led to any transformation. Methods. The study draws on methods of comparative and financial-economic analysis, as well as generalization of materials of consolidated cash flow statements. Results. The comprehensive analysis of annual reports of 25 oil and gas companies enabled to determine changes in the key figures and their relation in the structure of consolidated cash flow statements in the public sector of the industry. It also established main factors that contributed to the changes. Conclusions. In the period under study, I revealed an increase in cash from operating activities; established that capital expenditures in the public sector of the industry show an overall upward trend and depend on the level of oil prices. The analysis demonstrated that even integrated companies’ upstream segment prevail in the capital expenditures structure. The study also unveiled an increase in dividend payments, which, most of the time, exceeded free cash flows thus increasing the debt burden.

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A Practice-Based Statement of Cash Flows Learning Experience: An Initial Public Offering for Contempri Homes?

Issues in Accounting Education ◽

10.2308/iace-50640 ◽

2014 ◽

Vol 29 (1) ◽

pp. 195-216 ◽

Cited By ~ 1

Author(s):

Thomas G. Canace ◽

Jack E. Wilkerson

Keyword(s):

Initial Public Offering ◽

Learning Experience ◽

Cash Flows ◽

Statement Of Cash Flows ◽

Public Offering

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Crafting a Statement of Cash Flows: Preferred Airline Group Corporation Buys West Coastal Air, Inc.

SSRN Electronic Journal ◽

10.2139/ssrn.3416905 ◽

2019 ◽

Author(s):

Mark E. Haskins

Keyword(s):

Cash Flows ◽

Statement Of Cash Flows

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The Preference of Direct or Indirect Methods in Preparing the Statement of Cash Flows in Decision Making: An Academic Perspective

International Journal of Economics and Finance ◽

10.5539/ijef.v8n2p206 ◽

2016 ◽

Vol 8 (2) ◽

pp. 206

Author(s):

Abdullah, S. Hardan ◽

Majed, A. Qabajeh ◽

Aymen, M. Alshanti

Keyword(s):

Decision Making ◽

Indirect Method ◽

Direct Method ◽

Cash Flows ◽

Decision Makers ◽

Academic Rank ◽

Indirect Methods ◽

Statement Of Cash Flows ◽

Qualitative Characteristics ◽

Academic Sector

Two methods are used when reporting cash flows from operating activities: the direct method or the indirect method, both are acceptable from IAS with a preference of direct method. Thus, this paper examines which method of reporting the statement of cash flows provides useful information the decision makers rely on for decision making purposes. To achieve this aim, participants were selected from academic sector represented by universities professors. The study is based on the conceptual framework: qualitative characteristics of accounting information. To be useful, information must be relevant and represents faithfully what it claims to represent. In order to distinguish more useful financial information from those less useful, enhancing qualitative characteristics were examined. Results show that academic professors provide support for direct method of reporting cash flows over indirect method. The study sought to determine the effect of academic rank on these results. Evidence reveals that full and associate professors endorsed the preference of direct method more than assistant professors and lecturers. These results recommend the legislative bodies and entities to adopt the direct method in preparation the statement of cash flows.

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Megascreens USA Inc.—A Foreign Operations Case

Issues in Accounting Education ◽

10.2308/iace.2007.22.4.579 ◽

2007 ◽

Vol 22 (4) ◽

pp. 579-590 ◽

Cited By ~ 5

Author(s):

Charles A. Carslaw ◽

S. E. C. Purvis

Keyword(s):

Financial Reporting ◽

Foreign Currency ◽

Financial Statements ◽

The United States ◽

Cash Flows ◽

Consolidated Financial Statements ◽

Comprehensive Overview ◽

Financial Reporting Standards ◽

Foreign Operations ◽

Statement Of Cash Flows

This relatively short case gives students a comprehensive overview of the steps required to prepare consolidated financial statements under U.S. GAAP when a subsidiary prepares its accounts under a foreign GAAP—in this case, International Financial Reporting Standards (IFRS). While the case is closely based on an actual Australasian company seeking listing in the United States, the product and the exact financial details are disguised. Specifically, the case exposes students to the following: accounting for foreign currency transactions; adjustments to convert foreign GAAP to U.S. GAAP (accounting for license fees); translation of financial statements; change of functional currency; remeasurement of financial statements; and foreign consolidation and statement of cash flows with foreign operations. The case has been field-tested in an advanced accounting course and is also suitable for use in international accounting courses. Both undergraduate and graduate students have profited from the case.

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