• Journal of Korean Society of Industrial and Systems Engineering
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• v.41 no.2
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• pp.47-55
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• 2018

The Korean Ministry of Education (MOE) required cash flow statements, instead of fund statements, as a component of the financial statements of the Industry-Academic Cooperation Foundations (IACF) when it revised IACF accounting rules in 2012. While the fund statements were aligned its accounts to the operating statements' accounts level, the newly adopted cash flow statements' accounts retreated to two levels higher than those of the operating statements. It may be resulted from the consideration that IACFs' burden of preparing cash flow statements especially in direct method. To help IACFs prepare the cash flow statements, MOE's guidance on IACF accounting rules introduced cash flow statement preparation method and presented a practical example, but it did not check whether the accounts of the cash flow statement were reconciled to the accounts of corresponding balance sheet and operating statement. That means that the guidance still lacks how to assure it was accurately prepared. Our study proposed cash flow statement preparation using reconciliation method which reconciles cash flow statement accounts' amounts to balance sheet and operating statement accounts' amounts with integrity checking and also provided a practical example by using the same case in MOE's guidance on IACF accounting rules to help IACF accounting personnel to prepare a cash flow statement efficiently.

• The Journal of Asian Finance, Economics and Business
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• v.7 no.8
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• pp.87-94
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• 2020

The paper aims to investigate the impact of presenting statements of cash flow using the direct method and the indirect method on loan decision by credit officers at Vietnamese banks. The data was collected from 150 credit officers of commercial banks in Vietnam based on the questionnaire about making loan decision when the cash flow statement is presented in different methods, namely, direct and indirect methods. This research uses T-tests to check whether using the direct or indirect method affects the accurate calculation of loan criteria, affects the loan decision by credit officers, and compare these two methods in the aspects of information provision. The research has pointed out that: 1) the direct method helps the calculation of indicators related to loans more accurately; 2) credit officers say that, while the direct method of presenting cash flow statement provides clearer information, the use of either the direct method or the indirect method does not affect the banks' loan decision. Since then, the author recommends that cash flow statements should be provided with information in a direct method to present the information needed for loan decision more accurately so as to improve the quality of cash flow statement.

• The Journal of Asian Finance, Economics and Business
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• v.7 no.6
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• pp.85-93
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• 2020

The paper investigates the impact of the statement of cash flows of listed companies on lending decisions of commercial banks in the context of Vietnam. Survey data for the research were collected from 160 credit officers of Vietnamese commercial banks for short-term and long-term lending decisions, whether the cash flow statement includes complete information or has a lack of information. The cash flow statement, in which the information on the cash flow is completely contrary to the profit information on the income statement is examined. This paper employed T-tests to address the research issues in a market considered to be ineffective, like Vietnam. The research results show: (1) the information on the cash flow statement affects both the short-term and long-term lending decisions of credit officers, and (2) the lack of information on the cash flow statement in both cases of positive and negative profits affects the comfort and confidence of credit officers in making decisions. The research findings also indicate that cash flow statements are important for lending decisions of credit institutions in Vietnam. Therefore, this paper provides a new insight to managers on how to improve the quality of cash flow statement to meet the needs of lenders.

• The Journal of Industrial Distribution & Business
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• v.5 no.1
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• pp.5-9
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• 2014

Purpose - This study aims to examine the incremental information content of cash flw from operations and earnings in the Iranian capital market. Design, methodology, and approach - Based on market-based accounting research, this study uses statistical associations between accounting data (earnings and cash flw) and stock returns to assess/measure the incremental information content (value relevance) of cash flw and earnings. A multivariate regression model based on panel data is used to examine the incremental information content of earnings and cash flow from operations. Results - The results show that both earnings and cash flow from operations have incremental information content beyond each other. These results are consistent with the findings of recent studies. Overall, the fidings of this study support the usefulness of cash flw information in addition to earnings, in fim valuation by investors in the Iranian market. Conclusions - The study makes the following contributions to the Iranian literature on incremental information content of cash flw and earnings. First, this study employs actual cash flw data derived from cash flw statements. Second, this study employs a large sample size for a more recent period.

• Korean Business Review
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• v.22 no.2
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• pp.61-86
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• 2009

The purpose of this article is to investigate the effects of cash flow and accrual, which are the elements of earnings, and those of the elements of cash flow and accrual on the consistency of cash flow and firm's value. We analyzed 4 kinds of regression models, of which the independent variables are this period's cash flow, the elements of cash flow, accrual, and the elements of accrual, and the dependent variables are the next period's cash flow, and the stock price at the end of financial statements disclosure months, respectively. The sample firms were the manufacturing companies listed on the Stock Exchange 1980 through 2006, of which the fiscal year ended in December. And, the results of the analyses are as follows: Cash flow and accrual are shown to have significant relationships with cash flow consistency and the evaluations of firms' value. And, the elements of cash flow or accrual proved to have more influence than the total amount of them, on cash flow consistency and the evaluation of firms' value. Also, the results present that some of the elements of cash flow and accrual differently affect cash flow consistency and the evaluation of firms' value. Accordingly, this study indicates that each of the elements of cash flow and accrual needs to be considered respectively rather than the total amount of them, in the case that cash flow and accrual are used in the decision-making concerned with the forecast of cash flow and the evaluation of firms' value. This study also shows that each element of cash flow and accrual needs to be used differently for cash flow forecast and the evaluation of firms' value.

• Health Policy and Management
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• v.15 no.4
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• pp.81-109
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• 2005

According to many recent studies suggesting that cash flow analysis method tends to be more effective than traditional financial index analysis method to predict corporate bankruptcy, this study applies the cash flow analysis method to hospital business to identify the significant variables which can distinguish between superior hospitals and bankruptcy hospitals. The author analyzed recent 3 years, i.e. from the year of 2000 to the year of 2002, financial statements of 31 bankrupt hospitals In 2003, and the same number of superior hospitals through using Multiple Discriminant Analysis and Logit Analysis. The results are belows; First, the study releases that Logit Analysis is more likely to be effective than Multiple Discriminant Analysis. Second, this research also shows that traditional financial index analysis method is more superior compare to cash flow analysis method for hospital bankruptcy predict model. Finally, this study suggest that the significant variables, which can distinguish superior hospitals from bankrupt hospitals, are Operating/Current Liabilities$(Y_2)$, CFO/Equity$(Y_5)$ for cash flow analysis method and Net Worth to Total Assets Ratio$(X_1)$, Quick Ratio $(X_3)$, Return on Assets$(X_6)$, Growth Rate of Patient Revenues$(X_{16})$ for traditional financial index analysis method.

• The Journal of the Korea Contents Association
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• v.20 no.10
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• pp.510-521
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• 2020

Recently, transparency in accounting for medical institutions has been emphasized. However, due to the current system problems and structural limitations, there is a lack of diagnosis on the financial status of domestic hospitals. This study is based on the financial statements per 100 beds of 374 including domestic hospital level to tertiary hospital, and analyzed the Free Cash Flow(FCF) by hospital size from the perspective of Free Cash Flow Hypothesis. After deriving Operating Cash Flow(OCF) through the profit or loss statement of medical institutions, FCFs were analyzed through the prior and current financial statements and OCFs, and the correlation between financial variables was confirmed. According to the analysis, first, hospitals with 160 to 299 beds and 300 beds or more have relatively high FCFs. Second, certified tertiary hospitals, hospitals with less than 160 beds, and general hospitals have negative(-) FCFs. Thus, there's a need to narrow the FCF gap based on the size of the hospital, maintaining an appropriate level of FCF. This study is meaningful in that it was the first FCF analysis based on hospital size. This study is also expected to offer an informative resources in setting differentiated strategies according to the size of medical institutions when establishing new accounting policies in the future.

• Proceedings of the Safety Management and Science Conference
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• 2013.11a
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• pp.209-219
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• 2013

The research is to evaluate the statistical difference between K-GAAP(Generally Accepted Account Principles) in 2008 year and K-IFRS(International Financial Reporting Standards) in 2012 year. H Motor Company, S Electronics and L Electronics are the three representative firms adopting K-GAAP and K-IFRS in Korea. The ${\chi}^2$ homogeneous test are used to identify the reduction of the number of account items of four financial statements such as Statement of Financial Position(SFP), Statement of Comprehensive Income(SCI), Statement of Cash Flow(SCF), and Statement of Change in Equity(SCE) between K-GAAP and K-IFRS.

• The Journal of the Korea Contents Association
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• v.15 no.8
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• pp.473-480
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• 2015

The purpose of this study is to analyze the influence of the cash flow of pharmaceutical companies on R&D investment. 143 pharmaceutical companies listed in the KOSDAQ market from 2009 to 2013. Financial statements and comments in general and internal transactions were extracted from TS-2000 of the Korea Listed Company Association (KLCA), and data related to stock price was extracted from KISVALUE-III of NICE Information Service Co., Ltd. STATA 12.0 was used as the statistical package for panel analysis. The summary of the findings and the interpretation of the significance of this are as follows: First, the current ratio (internal finance) had a positive influence on R&D investment. Second, the debt ratio (external finance) had a negative influence on R&D investment. The pharmaceutical company prefers internal funds to external funds due to the asymmetry of information in the loan markets. In other words, this shows why internal finances have a significant influence on R&D investment at pharmaceutical companies.

• The Journal of Asian Finance, Economics and Business
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• v.7 no.11
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• pp.185-194
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• 2020

This study aims to find out whether political parties apply financial reports under PSAK (Statement of Financial Accounting Standards) No. 45. The Stewardship Theory provides the analytical framework. The objects in this study were 16 Yogyakarta City Political Parties in the Special Region of Yogyakarta, with the total number of 64 respondents. The application for processing data in this study used SPSS 22 version. Based on the results of analyzing data, H1, which had a sig (2-tailed) value of 0.026 <0.05, then H0, stating that there was an influence of the statement of financial position on the implementation of PSAK, was rejected. H2 had a sig (2-tailed) value of 0.116> 0.05, so that H0, stating that there was no significant effect of the activity report on the implementation of PSAK, was accepted. H3 had a sig (2-tailed) value of 0.027 <0.05, meaning that it rejected H0, which stated that there was a significant effect of the cash flow statement on the implementation of PSAK. Furthermore, H4 had a sig (2-tailed) value of 0.744> 0.05, indicating that H0 was accepted, stating that there was a significant effect of notes to the financial statements on the implementation of PSAK.