In principle, we must know an important point that allocations are specific to liabilities, whether they are related to short-term or long-term liabilities, but ......

We have explained all the items of the cash flow statement in both direct and indirect methods

If the company has a net operating profits of 30millions and the operating cash flow statement is 10 millions . The quality of operating profits = operating cash flow ratio / operating profits .

The income statement has a set of objectives, including that it presents the financial results of a business over the fiscal period and determines reasons for the increase or decrease the profits and losses

After preparing the income statement for the fiscal period, the financial analyst should analyze the income statement to find out the strengths and weaknesses

Today we have a practical example to show how to make a cash flow statement . This requires more than one part

The direct method is used in the company to be easily displayed and read by decision makers. As we clarified the difference between the direct 

In this part we are going to discuss cash flow statements from investing activities

In this article we will show the methods of preparing budgets for companies and projects . The budget consists of costs and revenues that are related to a particular project and are easy to follow their results independently through the company budget  . The project budget must match the  general  company budget    and of course the project uses all available resources in the departments such as marketing , financial accounting, production and human resources .

This is the uncovered part of the guarantee letter , that is as a company you presented a letter of guarantee from another company and you have facilities of a bank guarantee letter for example with the value of one million pounds . 

Disclosures of allocations , liabilities and potential assets  in the financial position , There must be disclosures of the allocations in the financial position . Allocations are included in the liabilities according to their types . The short term liability will be adjusted in a year , but the long term liabilities are adjusted in more than one year . They are listed in the income statement and  in the cash flow statement as explained before .

Who is the subcontractor ? The subcontractor is the person who is authorized by the construction company to accomplish work on its projects for a certain contractual sum. 

In part 2 we explained the net   earnings before tax  adjustments using the indirect method . In a CFO statement  the final number is the same if we used either methods ( the direct or indirect ) as the difference lies in the way of displaying the statement . In this article we are going to explain practically each term of the CFO statement .

Egyptian criterionNo. 31modifited in 2015, and International criterion No. 36 .A very important criterion used very widely in our practice life ,The asset impairment criterion can not be apply to some other assets