Capital and Cashflow statement: Difference between pages

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''Financial reporting''
1.  
1.  


''Financial accounting''.   
One of the primary published financial statements of a reporting entity.   


Money the business owes the owner.  
The Cashflow statement shows the cash movements within the entity, broken down into several categories prescribed by accounting rules - prescribed by accounting rules for external reporting and by management's requirements for internal reporting.  


This is equal to assets minus liabilities (including debt).
It may reconcile - for example - the accounting profit in the income statement with the total net changes in cash and cash equivalents in the balance sheet.


In other words, the equity.
 
Relevant accounting standards include Section 7 of FRS 102.




2.  
2.  


''Corporate finance''. 
An internal report giving similar information, but formatted according to internal management requirements.
 
More broadly in the corporate finance context, 'capital' is the total amount of funding available for the operations of a firm. 
 
This would include both its debt and its equity.
 
 
3.
 
''Company law''.
 
More narrowly in company law, 'capital' is the component of the total equity represented by the share capital of the company.
 
 
4.
 
''Regulation''.
 
In the regulatory capital context, 'capital' means what the particular regulations say that it means.
 
Here as elsewhere, care and consistency in definitions is essential.
 
 
 
5.
 
''Economics''.
 
'Capital' is one of the 'factors of production' in economics, the others classically being labour, land and enterprise.


In this context, 'capital' refers to the things that have been created to help in the production process, like machinery, factories and transport facilities. These things are sometimes known as 'capital goods'.




== See also ==
== See also ==
* [[Assets]]
* [[Balance sheet]]
* [[Capital adequacy]]
* [[Cash]]
* [[Capital intensity]]
* [[Cash and cash equivalents]]
* [[Capital mobility]]
* [[Cash conversion cycle]]
* [[Capital structure]]
* [[Cash flow statement]]
* [[Capital to labour ratio]]
* [[Cash management]]
* [[Capitalisation]]
* [[Direct method]]
* [[Cost of capital]]
* [[Income statement]]
* [[Credit balance]]
* [[Indirect method]]
* [[Debt capital]]
* [[Profit and Loss account]]
* [[Enterprise]]
* [[CertICM]]
* [[Equity cost of capital]]
* [[FRS 102]]
* [[Factors of production]]
* [[Finance ]]
* [[Investment bank]]
* [[Labour]]
* [[Land]]
* [[Liabilities]]
* [[Regulatory capital]]
* [[Servitisation]]
* [[Share capital]]
* [[Working capital]]


[[Category:Accounting,_tax_and_regulation]]
[[Category:Cash_management]]
[[Category:Compliance_and_audit]]

Revision as of 08:15, 14 December 2016

Financial reporting

1.

One of the primary published financial statements of a reporting entity.

The Cashflow statement shows the cash movements within the entity, broken down into several categories prescribed by accounting rules - prescribed by accounting rules for external reporting and by management's requirements for internal reporting.

It may reconcile - for example - the accounting profit in the income statement with the total net changes in cash and cash equivalents in the balance sheet.


Relevant accounting standards include Section 7 of FRS 102.


2.

An internal report giving similar information, but formatted according to internal management requirements.


See also