Consolidated Cash Flow Statement: Construction and Analysis
Duration : 5 days
Analyze the cash formation of the group by preparing the consolidated CFS in compliance with IFRS standards or Local regulations This training details the methods for preparing the consolidated cash flow statement according to the IFRS framework and Local consolidation rules, both of which have few divergences on this topic. In addition to a detailed presentation of the various sections of the statement and their content, you will learn how to understand the fundamental notion of "cash" in this summary statement, particularly the methods for determining "cash" flows from the accounts of the group entities and identifying the impacts on the group's "cash" from major consolidation operations and changes in scope. The focus is on practical application, and by the end of this training, you will be able to participate in the construction and analysis of your group's cash flow statement.
Learning Objectives
Identify the regulatory framework for publishing the cash flow statement
Prepare the cash flow statement from individual financial statements
Construct the consolidated cash flow statement to analyze the group's cash flow
Training Program
Identify the Regulatory Framework for Publishing the Cash Flow Statement
Explain the CFS
Structure of the statement
Objectives of the CFS
Brainstorming: the benefits of the CFS
Specify publication obligations and recommended formats
According to IFRS standards
According to Local rules (individual and consolidated accounts)
Case Study: comparative analysis of formats applied by several groups
Prepare the Cash Flow Statement from Individual Financial Statements
Represent the general structure of the statement
Key concept: cash and cash equivalents
Analysis of cash flow allocation by function: operating, investing, and financing activities
Identification of content and characteristics of each category
Practical Exercise: determine an operating cash flow using the indirect method
Implement the methodology for constructing the CFS from individual accounts
Application to operating cash flows
Application to investment-related cash flows
Application to financing-related cash flows
Practical Exercise: prepare a cash flow statement for an entity
Handle specific cash operations to present flows
Non-cash transactions
Hedging operations
Options for presenting net flows
Classification of certain flows not specified by standards
Quiz on specific cash operations
Prepare the Consolidated Cash Flow Statement to Analyze the Group's Cash Flow
Identify the specifics of the consolidated cash flow statement
Consolidation method and impact on cash flow presentation
Elimination of internal flows: case of dividends and capital increases
Specifics of equity-method entities
Presentation of flows related to acquisitions and disposals of control
Presentation of flows related to changes in ownership interests in a controlled entity
Impact of currency exchange rate fluctuations
Case of discontinued operations
Practical Exercise: determine the flows to present in case of a scope change
Implement the methodology for constructing the consolidated cash flow statement
From individual cash flow statements
From balance sheet accounts in flow format
Required disclosures in the notes
Key financial analysis ratios commonly used
Comprehensive Practical Exercise: use Excel matrices to prepare cash flow statements from individual and consolidated accounts of groups in different scenarios
Transfer Your training continues in your participant space. Log in to access resources, self-evaluate your acquired skills during the training, and facilitate the implementation of your commitments in your professional context.
Key Points
Analysis of cash flow statements from several groups to illustrate current practices
Practical exercises for constructing the cash flow statement using Excel
Numerous examples to better understand the construction and analysis of the CFS
Who Should Attend This Training
Consolidators
Chief Accountants
Chartered Accountants
Project Leaders
Auditors
Accounting and Financial Function Collaborators
Prerequisities
Knowledge of the mechanisms for preparing consolidated accounts or having the level of one of the following training sessions:
Techniques of Consolidation in IFRS: Principles and Methods
Teaching Methods
Training structured around skill transfer
Acquisition of operational skills through practice and experimentation
Collaborative learning during synchronous moments
Learning path in multiple stages to enable engagement, learning, and transfer
Training that promotes participant engagement for better anchoring of lessons
Satisfaction and Evaluation
Skill evaluation will be conducted throughout the training by the participant themselves (self-evaluation) and/or the trainer according to the training methods.
Online training evaluation in your participant space:
Immediately after the training, to measure your satisfaction and perception of skill improvement relative to the training objectives. With your consent, your overall rating and comments will be published on our site through Verified Reviews, a solution certified by NF Service
60 days after the training to validate the transfer of your acquired skills in a work situation
Attendance tracking and issuance of an individual training certificate or completion certificate
LONDON
128 City Road, EC1V 2NX London
PARIS
38 Rue Boulard, 75014, Paris