Creative Cash Flow Reporting : Uncovering Sustainable Financial Performance

by Charles W. Mulford; Eugene E. Comiskey

• ISBN13: 9780470893524
• ISBN10: 0470893524
• Format: eBook
• Copyright: 2010-06-01
• Publisher: Wiley

Summary

Successful methodology for identifying earnings-related reporting indiscretions Creative Cash Flow Reporting and Analysis capitalizes on current concerns with misleading financial reporting on misleading financial reporting. It identifies the common steps used to yield misleading cash flow amounts, demonstrates how to adjust the cash flow statement for more effective analysis, and how to use adjusted operating cash flow to uncover earnings that have been misreported using aggressive or fraudulent accounting practices. Charles W. Mulford, PhD, CPA (Atlanta, GA), is the coauthor of three books, including the bestselling The Financial Numbers Game: Identifying Creative Accounting Practices. Eugene E. Comiskey, PhD, CPA, CMA (Atlanta, GA), is the coauthor of the bestselling The Financial Numbers Game: Identifying Creative Accounting Practices.

Table of Contents

Foreword

Preface

About the Authors

Seeking Sustainable Cash Flow

An Artificial Boost to Operating Cash Flow

Classifying Cash Flow

Sustainable Cash Flow

Creative Cash Flow Reporting

Ignoring the Statement of Cash Flows

Cash Flow Analysis

Plan of This Book

Summary

Structure of the Statement of Cash Flows

Historical Background

Arrival of the Statement of Cash Flows

Non-GAAP Measures of Cash Operating Performance

International Differences in the Statement of Cash Flows

Summary

Is It Operating or Investing Cash Flow?

Investing Cash Flow

GAAP Flexibility: Is It Operating or Investing Cash Flow?

Beyond the Boundaries of GAAP

Summary

Is It Operating or Financing Cash Flow?

Financing Cash Flow

GAAP Flexibility: Is It Operating or Financing Cash Flow?

Beyond the Boundaries of GAAP

Summary

Income Taxes and the Statement of Cash Flows

Tax Reporting Essentials

Classification of Tax-Related Cash Flow

Nonrecurring Income Tax Cash Flows

Summary

Nonrecurring Sources and Uses of Operating Cash Flow

Characteristics of Nonrecurring Items of Operating Cash Flow

Examples of Nonrecurring Cash Sources and Uses

Management Identification of Nonrecurring Operating Cash Flow

Locating Nonrecurring Items of Operating Cash Flow

Cash Flow Tracking

Summary

Measuring Sustainable Operating Cash Flow

Sustainable Operating Cash Flow

Calibrating Operating Cash Flow Adjustments

Measuring Sustainable Operating Cash Flow

Completed Sustainable Operating Cash Flow Worksheet

Frequency and Size of Adjustment Items

Summary

Using Operating Cash Flow to Detect Earnings Problems

Relationship between Earnings and Operating Cash Flow

Earnings Supported by Artificial Means

Excess Cash Margin

Summary

Analyzing Operating Cash Flow

Cash Flow Analysis Statement

Using the Cash Flow Analysis Statement

Cash Flow Drivers

Closer Look at Core Operating Cash Flow

Summary

Understanding Free Cash Flow

Uses of Free Cash Flow

What Is Free Cash Flow?

Free Cash Flow to Common Equity: A Closer Look

Capital Expenditures

Acquisitions and Free Cash Flow

Summary

Glossary

Subject Index

Company Index

Table of Contents provided by Publisher. All Rights Reserved.