How To Improve Efficiency Of Current Funds

In the capital management of group companies, the capital allocation among member enterprises is quite frequent in order to improve the efficiency and efficiency of fund utilization.

How do we reflect the exchange of funds and the statement of cash flow? A view is that the spirit of the explanation of "accounting standards for enterprises" should be included in business activities if it does not really mean that.

Another view is that if interest on settlement is classified as investment activity, if interest is not settled, it is classified as business activity.

The two opinions are all simple.

The author thinks that to reflect the current funds, we should distinguish between "payment order" and "settlement interest" to make specific analysis.

It is reasonable to categorize as fund-raising activities, whether the interest is settled or not.

If the interest is settled after payment, it should be classified as investment activity, but how to classify the interest not settled? [this article is pferred from: lunwen.1kejian.com]

"Enterprise accounting standards explanation" pointed out: "for special events outside the daily activities of enterprises, such as natural disaster losses, insurance claims, donations, etc., should be incorporated into the relevant categories and reflect separately.

If it can not be specified, it can be included in the cash flow generated by business activities.

Donation income and expenditure can be included in business activities. "

This paragraph should be a response to the complex and changeable situation.

According to this spirit, the capital pactions that are paid first but then do not settle interest should be classified into business activities.

However, based on the sensitivity of "cash flow information of operational activities", practice shows that the handling of the explanation is not appropriate.

In an enterprise

The cash flow statement reflects "the amount of cash flow from operating activities" and the "net profit" reflected in the profit statement.

For this reason, the directors and independent directors stationed by strategic investors strongly questioned.

After communication, they understood the reasons for the difference in numbers, but insisted that capital pactions should not be included in business activities, because this is totally inconsistent with public perception.

Indeed, accounting is not a profound knowledge, and is closely related to production and life. Therefore, accounting processing is too complicated to be applied in practice, or arbitrarily simplistic, so that it is not advisable to lose rationality.

The basic principles also require that accounting information should be clear and clear for users to understand and use.

This example reflects

There are some problems in the current format.

It is stipulated that the cash flow statement shall report cash flows separately from business activities, investment activities and fund-raising activities.

At present, the "three categories" division is indeed difficult to deal with new situations and new problems.

A simulated bank or a financial company should carry out centralized management of the funds. If the subsidiary company has more than the limited amount of cash, it must be paid into the group company. When the cash is paid, the group will then allocate the funds. How can such funds be collected in the cash flow statement of a single entity? If, for example, the bridge funds crossed over the period and the intertemporal collection of funds (mixed with the bank accounts of the unrelated units), the funds that the listed companies are illegally occupied by the major shareholders, the funds appropriated by the executives of the state-owned enterprises, the capital pactions between the private entrepreneurs and the private enterprises, and how should they be classified? Again, the interrelated businesses in the private group are very frequent, and after many years of rolling, the capital pactions that have occurred during the editing period have been unable to distinguish the order of receipts and payments. For example, in order to improve the efficiency and efficiency of capital use and ensure the safety of funds, enterprise groups pass settlement centers and financial centers.