The structuring of cash flow information as part of strategic management accounting

2021 ◽  
Vol 22 (5) ◽  
pp. 509-523
Author(s):  
Lyudmila V. SHALAEVА
Keyword(s):  
Strategic Management ◽  
Cash Flow ◽  
Market Value ◽  
Cash Flows ◽  
Practical Significance ◽  
Strategic Management Accounting ◽  
Flow Information ◽  
Methodological Principles ◽  
Management Reporting

Subject. Considered together with assets, liabilities, financial results, cash flows give a comprehensive view of the company's position and its market value. Such estimates are important for strategic management and should be based on the reliable information, which may proceed from strategic management reporting. Objectives. I outline aspects for structuring the cash flow information as part of strategic management reporting. Methods. Practical recommendations are based on proceedings of the Russian and foreign scholars, methods of analysis, synthesis and generalization. Results. The article presents methodological principles for structuring the cash flow information, which are focused on aspects, subjects of strategic control and regulation, key strategic benchmarks of net cash flows, its balance, significance for key strategic values, as they shape the structure, content and purpose of the strategic management statement on cash flows. Conclusions and Relevance. The aspects for structuring the cash flow information help develop methodological principles for strategic management reporting and accounting and improve the quality of information supplied for strategic management. The findings are of practical significance for enhancing strategic management reporting on cash flows so as to improve the quality of available information for assessing the financial position and an increment of the market value of a company.

Developing the adaptive process-based budgeting through TD-ABC and TD-ABB as part of strategic management accounting

2020 ◽  
Vol 23 (10) ◽  
pp. 1182-1194
Author(s):  
A.A. Akhmetzyanov ◽  
A.Yu. Sokolov
Keyword(s):  
Strategic Management ◽  
Cost Allocation ◽  
Management Accounting ◽  
Practical Significance ◽  
Common Time ◽  
Strategic Management Accounting ◽  
Scientific Papers ◽  
The Subject ◽  
The Common ◽  
The Cost

Subject. The article focuses on the advanced time-driven tools for allocating overhead expenses, which are based on process-based budgeting. Objectives. We articulate a technique for cost allocation so as to assess the cost of each process with reference to the common time driver. Methods. The study relies upon methods of systematization, classification, analogy and comparison, and summarizes the scientific literature on the subject. Results. The article presents our own suggestions on implementing TD-ABC and TD-ABB into the strategic management accounting process of developer companies. The principles were proved to help more effectively allocate overhead expenses and assess the capacity load of each process performed by functions, departments and employees. Carrying out a comparative analysis, we found certain reserves for utilizing resources more effectively. Conclusions and Relevance. The findings are of scientific and practical significance and can be used by developer and construction businesses. The conclusions can prove helpful for scientific papers, student books, and further research.

THEORETICAL AND METHODOLOGICAL PRINCIPLES OF CASH FLOWS OF ENTERPRISES

2017 ◽  
Author(s):  
Roman Greshko ◽  
◽  
Violetta Kharabara ◽  
Olena Tretyakova ◽  
◽  
...  
Keyword(s):  
Cash Flow ◽  
Cash Flows ◽  
Management Policy ◽  
Flow Management ◽  
Financial Investment ◽  
Cash Flow Management ◽  
Goods And Services ◽  
Methodological Approaches ◽  
Conducting Research ◽  
Methodological Principles

Efficient management of cash flows of the enterprise provides predict activities in a modern organization. The issue of ensuring balancing and synchronization of outflow and inflow of cash and their equivalents is important for any enterprise. The urgency of the study greatly increases in conditions of complex economic processes that create significant risks and difficulties in conducting a balanced cash flow management policy. The purpose of this study is to substantiate the theoretical and methodological principles of management of cash flows of the enterprise, which provides for the determination of the content of the concept of cash flows, their types and classification, as well as the formulation of methodological approaches to the management of cash flows of the enterprise. The theoretical basis for conducting research is the work of domestic and foreign scientists who studied the issue of managing the cash flows of the enterprise. In the course of the study of theoretical and methodological bases of management of cash flows of the enterprise, economic content and value of cash flows of the enterprise are determined. In the course of studying the approaches of various scholars, the proper definition of cash flows, which characterizes them as the receipt and payment of highly liquid assets of the enterprise within the framework of financial, investment and current activities of the enterprise, is formulated in order to ensure uninterrupted production, sales and other work, which leads to a change in the amount on the current account in the bank and the balance in the box office. Also in the article, methodological approaches to managing cash flows of enterprises that provide for quality accounting and collection of information on funds, analysis of preliminary management experience, substantiation of optimization measures, drawing up a payment calendar for the next year, control over the implementation of a substantiated cash flow management policy. Measures are determined to balance cash flow due to leasing, use of leasing, buying, emission or sale of corporate bonds or other securities, changing the policy of selling goods and services.

scholarly journals Valuation Schools and the Evolution of the Income Approach. An Evaluation of Change Trends

2019 ◽  
Vol 27 (2) ◽  
pp. 66-76
Author(s):  
Ewa Kucharska-Stasiak
Keyword(s):  
Cash Flow ◽  
Financial Reporting ◽  
Relevant Literature ◽  
Market Value ◽  
Cash Flows ◽  
Advantages And Disadvantages ◽  
Eu Legislation ◽  
Income Approach ◽  
The Subject ◽  
Valuation Methodology

Abstract The income approach is the subject of debates conducted by academics and practitioners as one of the most controversial approaches in valuation practice. It is also somewhat differently understood by the three historically shaped valuation schools (US, British and German). This article compares the main assumptions underpinning the income approach’s investment method between the three schools in order to: 1) determine why the assumptions change and in what direction; 2) assess the advantages and disadvantages of explicit cash flows; and 3) evaluate the advisability of incorporating explicit cash flows into Polish valuation methodology. A thesis is formulated that, in Poland, the investment method should use implicit cash flows for estimating the market value of properties. There is a need to include explicit cash flow in university programs, but their use should be limited to valuations undertaken to determine the investment value of a property or the market value of portfolio properties, as well as valuations carried out for the purposes of financial reporting as required by EU legislation (MSSF 13 and MSR 40). The article was prepared based on the review and analysis of the relevant literature.

scholarly journals The usefulness of operating cash flow information: Does format matter?

2012 ◽  
Vol 10 (1) ◽  
pp. 44-52 ◽  
Author(s):  
Shadi Farshadfar
Keyword(s):  
Cash Flow ◽  
Indirect Method ◽  
Direct Method ◽  
Cash Flows ◽  
Indirect Methods ◽  
Flow Information ◽  
Operating Cash Flow ◽  
Future Cash Flows ◽  
Direct And Indirect Methods ◽  
Level Analysis

This study investigates whether the direct method of presenting cash flows from operations is superior to the indirect method in its ability to forecast future cash flows. It also considers the effect of industry characteristics on the relative usefulness of direct and indirect methods of cash flow presentation. The study, which uses a sample of Australian firms, finds that both the direct and indirect methods improve the forecast of future cash flows. However, the indirect method of reporting cash flows from operations is more relevant than the direct method in predicting future cash flows. Evidence from the industry-level analysis overall reinforces the main results.

scholarly journals KREATIVNO FINANSIJSKO IZVEŠTAVANJE O NOVČANIM TOKOVIMA

2017 ◽  
pp. 163
Author(s):  
Aleksandra Arsenijević ◽  
Tadija Đukić
Keyword(s):  
Cash Flow ◽  
Financial Reporting ◽  
Market Value ◽  
Financial Statements ◽  
Cash Flows ◽  
Financial Position ◽  
A Company ◽  
Operating Activities

Financial statements should realistically show financial position, performance, and cash flows of a company. Creative financial reporting represents a deliberate manipulation of information in financial statements in order to create misperceptions on company operations. Creative financial statements are primarily intended for investors, in order to encourage them to purchase company shares and thus increase its market value. Creativity in compiling cash flow statements lies in presentation of operating activities as investing and financing activities, and vice versa.

scholarly journals RESEARCH APPROACHES TO MONETARY FLOW OPTIMIZATION SUBJECT TO SELECTED FACTORS AND CONTROL MEASURES REDUCING THE RISK OF BANKRUPTCY OF THE ORGANIZATION

2017 ◽  
pp. 109-119
Author(s):  
Lyudmila Ivanovna Fedorova ◽  
Svetlana Vyacheslavovna Dzhezheliy
Keyword(s):  
Cash Flow ◽  
Cash Flows ◽  
Control Measures ◽  
Managerial Decision ◽  
Flow Management ◽  
Managerial Decision Making ◽  
Cash Flow Management ◽  
Rational Management ◽  
And Control

In modern conditions the competitiveness of organizations is provided by rational management decisions, which are taken depending on various factors and their impact on the cash flows of the organization. The theme of the study of factors and control measures influencing cash flow management for reducing the risk of bankruptcy is in all respects one of the most controversial and much cited. In the course of study the authors have summarized the approaches of Russian and foreign authors towards the concept "cash flow", revealed certain problems in the quality of decisions, arranged the factors increasing the degree of their effectiveness and directly affecting the financial performance of the organization. Application in the work of the organization of individual elements ("morale") of the group of environmental factors and standards of internal reporting will improve the efficiency of managerial decision-making in part of cash flows from different activities.

scholarly journals The FASBs Concepts Statement On Cash Flows And Present Value

2011 ◽  
Vol 19 (4) ◽  
Author(s):  
Stanley Martens ◽  
Thomas Berry
Keyword(s):  
Cash Flow ◽  
Accounting Standards ◽  
Fair Value ◽  
Cash Flows ◽  
Financial Accounting ◽  
Financial Accounting Standards Board ◽  
Present Value ◽  
Numerical Examples ◽  
Flow Information

In February 2000, the Financial Accounting Standards Board (FASB) issued Statement of Financial Accounting Concepts No. 7, Using Cash Flow Information and Present Value in Accounting Measurements.  In this document the FASB asserts without proof that a present value computation along its lines will provide a good estimate of the fair value of an asset or liability.  Using numerical examples provided by the FASB, we attempt to construct arguments in support of the FASB’s claim.  We find that such arguments require strong and not at all obvious assumptions about players in hypothetical markets.

scholarly journals Value Chain Analysis for Strategic Management Accounting: Case Studies of Three Private Universities in Kupang - East Nusa Tenggara

2020 ◽  
Author(s):  
Angela Merici Minggu ◽  
Anis Chariri ◽  
Tri Jatmiko Wahyu P
Keyword(s):  
Strategic Management ◽  
Value Chain ◽  
Management Accounting ◽  
Private Universities ◽  
Infrastructure Development ◽  
Value Chain Analysis ◽  
Strategic Management Accounting ◽  
Chain Analysis

This study aims to describe the concept of value chains as the basis for strategic management accounting design in three private universities in Kupang (East Nusa Tenggara). A qualitative approach with multiple case study methods is used in this study by focusing on the problems that arise as a result of the enactment of Law   No. 12 of 2012 concerning PTN-BH concerns autonomy and decentralization. Semi-structured interviews were conducted at three leaders of private universities, they were chosen because they were considered to have the greatest role in improving the quality of the institutions they lead. This research offers a contribution in identifying competitive advantages in an effort to improve the quality of private universities. In addition, contributions in designing strategic management accounting are also carried out in order to assess their relative position against competitors. This study found ten main themes, namely the number of new students, the ratio of lecturers to students; recruitment of new lecturers; use of technology; national and international publications; public services; quality of lectures; quality of graduates and waiting period; infrastructure development and promotion. Value chain analysis is proven to be able to breaking down the university to determine relevant strategies in order to improve sustainable quality. This research also shows that the case study method can be a powerful tool in analyzing the value chain concept. Keywords: Value Chain, Strategic Management Accounting, Private Universities

scholarly journals Classification of bankruptcy with cash flow information: Evidence from small size firms

2016 ◽  
Vol 12 (2) ◽  
pp. 86-95
Author(s):  
Lious Ntoung Agbor Tabot ◽  
Helena Maria Santos de Oliveira ◽  
Cláudia M. F. Pereira
Keyword(s):  
Cash Flow ◽  
Cash Flows ◽  
Financial Ratios ◽  
Corporate Failure ◽  
Dividend Payments ◽  
Fixed Charges ◽  
Flow Information ◽  
Study Test ◽  
Flow Components

Corporate financial ratios have been debated in the past as the most importance measures in predicting corporate failure, yet gaps remain in the literature about cash flow information in classifying between bankrupted and non-bankrupted firms. This study test whether cash flow components is more useful in classifying bankrupted and non-bankrupted of small and unlisted firms in Spain. The results of this study suggest that cash flows components are superior to financial ratios for classifying small failed and non-failed companies with the logit model. Particularly, most failing firms, reduce or avoid paying dividend to their owner. This reduction or the absence of dividend payments as a proportion of total outflow is often related to either a significant decrease in the net operating inflow and/or an increase in the relative outflow to fixed charges resulting from increased external debt financing.

scholarly journals A Structural Equation Model for Analyzing the Impact of Strategic Management Accounting Techniques on Quality of Financial Information

2018 ◽  
Vol 10 (4) ◽  
pp. 62
Author(s):  
Mohand Fayz Saleem AL-Dweikat ◽  
Mohmoud Ibrahim Nour
Keyword(s):  
Strategic Management ◽  
Structural Equation ◽  
Positive Impact ◽  
Management Accounting ◽  
Financial Information ◽  
Equation Modeling ◽  
Strategic Management Accounting ◽  
Information Relevance ◽  
The Impact

This paper aims to analyzing the effect of strategic management accounting techniques on quality of financial information in private Jordanian universities in the capital, Amman. The study involves a questionnaire-based survey of dean and heads of department respondents from private Jordanian universities at Amman capital. A total of (212) valid questionnaire was finally obtained for analysis towards achieving the study objectives. Structural equation modeling was performed to understand the relationship between study variables. The results show that Benchmarking has a significant positive impact on Quality of Financial Information (Relevance, Understandability and Comparability). Value Chain Cost, also, has a significant positive impact on Quality of Financial Information (Relevance, Understandability and Comparability). As well as, Balanced Scorecard has a significant positive impact on Quality of Financial Information.This study displays the important role of strategic management accounting techniques in enhancing the Quality of Financial Information, as well as, helps decision makers to take their decisions based on Information Relevance, Understandability and Comparability.

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