Claret School

Claretian Missioners

Matter:

Accounting

Topic:

Different types of consolidation

Teacher:

Amis Herrazo

Student:

Ocando Camino, José Ignacio

12° Commerce

Delivery Date:

Panama August 14th ,2014

Consolidated of statements of cash flows
In financial accounting, a cash flow statement, also known as statement of cash flows, is
a financial statement that shows how changes in balance sheet accounts and income
affect cash and cash equivalents, and breaks the analysis down to operating, investing, and
financing activities. Essentially, the cash flow statement is concerned with the flow of cash in
and out of the business. The statement captures both the current operating results and the
accompanying changes in the balance sheet.
As an analytical tool, the statement of cash flows is useful in determining the short-term
viability of a company, particularly its ability to pay bills. International Accounting Standard 7
(IAS 7), is the International Accounting Standard that deals with cash flow statements.
People and groups interested in cash flow statements include:

 Accounting personnel, who need to know whether the organization will be able to cover
payroll and other immediate expenses
 Potential lenders or creditors, who want a clear picture of a company's ability to repay
 Potential investors, who need to judge whether the company is financially sound
 Potential employees or contractors, who need to know whether the company will be able
to afford compensation
 Shareholders of the business.
Financial statement

A financial statement (or financial report) is a formal record of the financial activities of a
business, person, or other entity.
Relevant financial information is presented in a structured manner and in a form easy to
understand. They typically include basic financial statements, accompanied by a management
discussion and analysis:

1. A balance sheet, also referred to as a statement of financial position, reports on a

company's assets, liabilities, and ownership at a given point in time.
2. An income statement, also known as a statement of comprehensive income, statement
of revenue & expense, P&L or profit and loss report, reports on a
company's income, expenses, and profits over a period of time. A profit and loss
statement provides information on the operation of the enterprise. These include sales
and the various expenses incurred during the stated period.
3. A statement of cash flows reports on a company's cash flow activities, particularly its
operating, investing and ffinancing activities.
For large corporations, these statements may be complex and may include an extensive set
of footnotes to the financial statements and management discussion and analysis. The notes
typically describe each item on the balance sheet, income statement and cash flow statement
in further detail. Notes to financial statements are considered an integral part of the financial
statements.
Annual report

An annual report is a comprehensive report on a company's activities throughout the

preceding year. Annual reports are intended to give shareholders and other interested people
information about the company's activities and financial performance. They may be considered
as grey literature. Most jurisdictions require companies to prepare and disclose annual reports,
and many require the annual report to be filed at the company's registry. Companies listed on
a stock exchange are also required to report at more frequent intervals (depending upon the
rules of the stock exchange involved).

Typical annual reports will include:

 General Corporate Information

 Accounting policies
 Balance sheet
 Cash flow statement
 Contents: non-audited information
 Profit and loss account
 Notes to the financial statements
 Chairpersons statement
 Director's Report
 Operating and financial review
 Other features
 Auditors report
Other information deemed relevant to stakeholders may be included, such as a report on
operations for manufacturing firms or corporate social responsibility reports for companies
with environmentally or socially sensitive operations. In the case of larger companies, it is
usually a sleek, colorful, high-gloss publication.
The details provided in the report are of use to investors to understand the company's financial
position and future direction. The financial statements are usually compiled in compliance
with IFRS and/or the domestic GAAP, as well as domestic legislation (e.g. the SOX in the U.S.).
In the United States, a more-detailed version of the report, called a Form 10-K, is submitted to
the U.S. Securities and Exchange Commission. A publicly held company may also issue a much
more limited version of an annual report, which is known as a "wrap report." A wrap report is a
Form 10-K with an annual report cover wrapped around it