fabm periodical

• are a structured representation of the financial position and financial performance of an entity.

• its objective is to provide information about the financial position, financial performance and cash flows of an entity that is useful to a wide range of users in making economic decisions.

financial statements

show the results of the management’s stewardship of the resources entrusted to it.

financial statements

Financial statements provide information about an entity’s:

1. Assets

2. Liabilities

3. Equity

4. Income and expenses, including gains and losses

5. Contributions by and distributions to owners in their capacity as owner’s

6. Cash flows

forms of business organizations

• sole proprietorship

• partnership

• corporation

Header Format

• Name of the Business/Company

• Name of the Financial Statement

• For the month/year/period ended

the Statement of Changes in Equity includes the following items: (5)

• Beginning Capital Balance

• (+) Any additional investments

• (+) Net income or (-) net loss of the company

• (-) Withdrawals by the owner

• Ending Capital Balance

It is a formal statement that report about entity’s “CASH” transactions which classify as cash receipts (inflows) and cash payments (outflows) into operating, investing and financing activities.

Statement of Cash Flow

Cash Flow Activities

• Operating

• Investing

• Financing

All related activities to the business main source of revenue and incurred and payment of expenses.

Reported in:

• Statement of Comprehensive Income (SCI)

• SFP - Current Assets & Current Liabilities

Operating Activities

Activities of an entity’s that related to sale and purchase of long-term assets.

Reported in:

• SFP - Non-current Assets

Investing Activities

Activities of the business related to the acquisition of funding for the use of the entity.

Reported in:

• SFP - Non-current Liabilities and Equity

Financing Activities

Operating Activities (Cash Inflows, +)

• Receipts from sales of goods and rendering services.

• Collection of Accounts Receivable.

• Receipts from royalties, fees, commission and other revenues.

• Refund to supplier

Operating Activities (Cash Outflows, -)

• Payment to supplier’s goods and services.

• Payment for operating expenses

• Payment for interest expense

• Charity Donation

• Cash Refund to customer

Investing Activities (Cash Inflows, +)

• Cash proceeds from selling property, plant and equipment.

• Cash proceeds from selling investment in debts or equity securities.

Investing Activities (Cash Outflows, -)

• Payment for purchasing property plant and equipment.

• Payment for purchasing debt and equity securities.

Financing Activities (Cash Inflows, +)

• Cash investment by owners.

• Cash proceeds from the issuance of share capital

• Cash proceeds from long term borrowing (Bank Loan)

Financing Activities (Cash Outflows, -)

• Cash withdrawal by owners.

• Payment for cash dividends to shareholder

• Payment for long term borrowing