Aci Financial Statement
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The corporations are now making ready this assertion as an integral a half of their financial statements. This paper examines empirically the current practices adopted by pattern corporations in preparation of money flow statement and concludes that the sample corporations are in line (with few exceptions) with the necessities of International Accounting Standard (IAS)-7 or Bangladesh Accounting Standard (BAS)-7. It also proposes some recommendations for improving the presentation of the assertion Key words: Cash circulate assertion, IAS/BAS, Listed Company, Disclosure.
Introduction The objective of a money circulate statement is to provide info on the cash move from a company’s working, investing and financing actions to enable the users of its monetary statements to evaluate the power of the company to generate cash and to use the historic cash flows to predict future cash flows. The money circulate info enhances the comparability of the working efficiency by varied firms, as a outcome of it eliminates the effects that arise from using totally different accounting treatments for a similar transactions and events.
The use of cash move data is gaining importance within the evaluation of economic statements (Epstein 1991; Yap 1997; Jones and Widjaja 1998; Previts and Bricker 1994). Cashflow information is considered less open to manipulation than info on earnings, as a result of it’s based on the precise receipt and fee of cash only and not on the accrual and other accounting principles. Rees (1995:75) adds that the cash circulate statement may be more informative than the opposite statements. However, he literature on the cash move statement indicates that there are grey areas in cash flow reporting which would possibly be open to various interpretations (Everingham and Watson 2002).
The perceived simplicity of the money circulate statement could subsequently create synthetic confidence within the reliability of companies’ money flow reporting and the comparability of various companies’ money move information. The acceptance of IAS-7: The Cash Flow Statement has added a brand new dimension to the preparation and presentation of economic statements in Bangladesh.
This paper is an try to research into the state of cash flow reporting by the listed Bangladeshi * Lecturers, Department of Business Administration, ASA University Bangladesh 210 ASA University Review, Vol. 6 No. 2, July–December, 2012 Textiles and Clothing companies normally. The focus isn’t on the standard of the reporting of the companies but somewhat on what the reporting levels are in general. Objectives of the research The major aims of the examine are as follows: 1. to establish the present apply of cash flow statement of Pharmaceutical corporations in Bangladesh. 2. o provide current money flow statement format, construction and reporting on the idea of knowledge provided in the annual stories of the chosen listed Pharmaceutical firms in Bangladesh. Methodology of the examine The study was performed in accordance with secondary info obtained from various sources. The overview of standardization of financial reporting and the regulatory framework has been primarily based on laws, regulation, and guideline and also on varied published sources of data taken from International Accounting Standard Board (IASB) and Bangladesh Accounting Standard 7 (BAS 7).
A limited survey has also been made masking a total of 12 Pharmaceutical companies’ annual reviews (2009) enlisted in Dhaka Stock Exchange (DSE) and Chittagong Stock Exchange (CSE). These are selected on the basis of comfort sampling process. In order to make the examine more revealing it additionally covers some analysis articles, textbooks, publications and websites of assorted accounting our bodies. Limitations of the study 1. Applied non profitability techniques have been used. 2. Due to limitation of the intensive supplies, books and previous studies in Bangladesh literature review could not be in depth. 3.
This examine consists of only 12 listed Pharmaceutical corporations because of time and sources constraints. Literature review Cash move statement: A historical surroundings/background Cash move Accounting (CFA) was the principle system of accounting up to beginning of the 18th century (Watanabe, Izumi: The evolution of Income Accounting in Eighteenth and Nineteenth Century Britain, Osaka University of Economics, Vol. 57, No. 5, January 2007, p. 27-30). Till then, accounting allocation and profit measurement have been relatively unimportant; the profit and loss account being used to shut off ledger accounts at every period finish.
However, with the appearance of idea and practices of enterprise continuity, periodic measure and statement of monetary place began to grow. Thus the basis of money transaction turns into basis for the allocation based mostly techniques of accounting today. Although there has been a fairly sustained interest in fund flow statements (based on allotted accounting data) because the starting of the twenty century, CFA appears to have acquired little or no assist from accountants till the early Nineteen Sixties.
At that time there was little concern over the use of ‘cash flow’ data within the financial analysis- money move being interpreted as ‘profit plus depreciation (. Winjum, J. o, 1972). In 1961 AICPA recognized the significance of fund assertion by publishing Accounting Research Study (ARS) Cash Flow Statement Disclosures in Pharmaceutical Companies 211 NO 2“Cash move analysis and fund statements”. Before that, accountants had prepared funds statements primarily as management report. The Accounting Principles Board (APB) responded in October 1963 by issuing APB Opinion NO. : “the statements of and application of funds”, which recommended that a press release of sources and application of funds be presented on a supplementary basis. Because of the favorable response of the business neighborhood to this pronouncement, the APB issued Opinion No. 198: “Reporting changing in Financial Position” in March 1971. This opinion required that an announcement of changing monetary place be presented as a basic monetary statement and be coated by the auditor’s reports. In 1981 the Financial Accounting Standard Board (FASB) reconsidered fund move issues as a part of the conceptual framework project taken in 1976.
At this time the FASB decided that the cash flow reporting points ought to be considered at the usual degree. Subsequent deliberation resulted in Statement of Financial Accounting Standard (SFAS) No. 95: ‘Statement of money flows’ in Nobember1987 (Weygandt, Kieso, Kimmel 1998: 1936). Fund move assertion Vs Cash flow statement Both fund flow assertion and money move statement serve as a basic elements of the financial statements. In 1961, the AICPA issued ARS No. 2, “Cash Flow Analysis and the Fund Statements” which recommended that a fund statement coated by auditor’s opinion be included in firms financial stories.
According to paragraph 5 of Preface to Statement of International Accounting Standard [approved by the IASC Board in November1982 for publication in January 1983 and supersedes the preface published in January 1975 (amended March 1978)], “the time period ‘financial statements’ covers steadiness sheets, revenue statement or profit and loss accounts, statements of change in financial place, notes and other statements and explanatory supplies which are identified as being a half of monetary statements” (IASC, 2000:32).
As per paragraph 7 of framework for the Preparation and Presentation of Financial Statements (approved by IASC Board in April 1989 for publication in July 1989): “A full set of economic statement usually includes a steadiness sheet, an revenue statements, a statements of change in financial place (which could additionally be offered in a wide range of methods, for instance as a press release of money move or an announcement of fund flows) and people notes and different statements and explanatory materials which may be an integral part of the monetary statements” (IASC : p. 3-44). As per paragraph 4 of the previous IAS 7 (October 1977), statements of change in monetary position, the time period ‘ funds’ referred to money, money and money equivalents or working capital (IFAC, 1992: p. 813). Funds supplied or utilized in operation of an enterprise ought to be presented within the statements of adjustments in monetary assertion separately from other sources and uses of fund.
Unusual objects, which are not part of strange actions of the enterprise, should be separately disclosed (IASC: Para 21). But many users of financial statements think about current practices of reporting fund flows as confusing because an extreme amount of info is compressed in the statements of change in monetary position, and because no single definition has been established (Mosich and Larsen, 1982; p. 935).
In order to develop a conceptual framework for financial accounting and reporting, the FASB issued in December 1980 a discussion memorandum “reporting Fund circulate, Liquidity and Financial Flexibility” which was issued for the following causes: (1) for assessing future money flow, and (2) current practices relating to the reporting of funds circulate info aren’t totally satisfactory. As a result of deliberation, FASB issued SFAS NO. ninety five ‘Statements of Cash Flow’ in 1987.
The statements require the inclusion of statements of Cash Flows quite than a statement of Change in Financial position when issuing a whole set of financial statements 212 ASA University Review, Vol. 6 No. 2, July–December, 2012 which was made efficient for annual periods ending after July 15, 1988. The major requirements of the statements are of the next two areas: Basis of Presentation: The statement must concentrate on money receipts and funds and must clarify the change in cash plus money equivalents.
Classification of cash flows: Cash flows are to be classified based on operating, investing and financing activities. The basis of such classification is derived from the financial concept, which state that the enterprise derives the cash used for investing actions and settlement of outstanding monetary obligation in an accounting interval from inner and exterior sources. Internal money sources emanate from the net money generated from current operation and perhaps disinvesting and depletion of money assets firstly of the period.
External money sources come from financing actions corresponding to borrowing and receiving cash from the sale of equity shares to existing and new shareholders (Wallace et,al). Benefits of Cash Flow Information – The info in a money circulate assertion helps investors, collectors, and others to assess the next features of the firm’s monetary position. – Such statements serve as a mechanism for predicting the power to generate future money flows for the buyers, collectors and others. – This enables managers or management to plan coordinate and management monetary operation in an efficient method. It provides a sign of the relationship between profitability and money generating capacity thus of the standard of the profit earned. – It furnishes data to the administration relating to the entities’ ability to pay dividend and meet obligations. – Analyst and different users of financial info usually, formally or informally, develop models to evaluate and evaluate the present worth of the future cash move of entities. Historical money flow statements could presumably be useful to check the accuracy of past assessment (ACCA Text book half 2. P. 324). It is free from manipulation and isn’t affected by subjective judgments or by accounting policies. – Such a press release dictates conditions when a business has made big profit but has run out cash or it has sustained loss but has sufficient cash availability. – The extent of money generated from operational activity and external finance so as to meet capital, tax, and dividend necessities may be obtained from such statements (Lee, T. A: 1972:27-36). – It aids within the analysis of threat, which incorporates both the expected variability of future return and probability of insolvency or chapter ( Hendrickson, Eldom.
S, 1982: 237). – Such statements reveal the capability of an enterprise to pay its short obligation as and when due to the lenders. – A cash move assertion in conjunction with a balance sheet provides data on liquidity, viability, and adaptability. The balance sheet is usually used to obtain information on liquidity, however the info is somewhat incomplete for this objective as the steadiness sheet is ready at a selected level of time. Cash Flow Statement Disclosures in Pharmaceutical Companies 213 It may assists customers of monetary statements in making judgments on the amounts, timing and diploma of certainty of future money flows. – This statement supplies information that is helpful in checking the accuracy of past evaluation of future money flows and in inspecting the connection between profitability and internet cash flow and the influence of adjusting worth (IAS 7: Para 3 & 4). – Information on money flows categorized by three teams of actions (Operating, investing and financing) that permit customers to assess the impression of these activities on the financial place of the enterprise and the quantity of its money and money equivalents.
This info can also be to judge the relationship among those actions (IAS 7: Para 11). – This statement is of special significance in assessing future money flows, high quality of income operating capability, financial flexibly and liquidity, and knowledge on financing and investing actions. Using cash flows from operating activities from the cash flow statements, totally different ratios corresponding to liquidity, ratio, solvency ratio, and profitability ratios can also be calculated to evaluate an enterprise’s liquidity, solvency, and profitability. Aziz uddin and Bala, 2001: p. 14) Overview of Cash circulate assertion The money move statement explains the adjustments which have occurred within the company’s cash and money equivalents through the yr by classifying the cash flows in its working, investing and financing actions. The statement should give consideration to money receipts and funds and must clarify the change in cash plus money equivalents. The classification is done in a method that’s most appropriate to the company’s business.
The following are the definitions of the components of the cash move statement: Cash: money on hand and demand deposits Cash equivalents: brief time period, highly liquid investments which might be readily convertible to recognized amounts of cash and are subject to an insignificant risk of adjustments in worth. Operating activities: the principal revenue-producing actions of the enterprise and other actions that are not investing or financing activities Investing actions: the acquisition and disposal of long-term belongings and other investments not included in money equivalents.
Financing actions: actions that lead to changes within the measurement and composition of the equity capital and borrowings of the enterprise (Epstein, p. 93). Objective and Scope of IAS 7 Information concerning the cash move of an enterprise is beneficial in offering users of financial statements with a foundation to assess the ability of the enterprise to generate cash and cash equivalents and the needs of the enterprise to utilize these money flows. The economic choice taken by users requires an evaluation of the power of an enterprise to generate cash and cash equivalents and timing and certainty of their technology.
The goal of IAS 7 is to require the provision of information about the historic change in cash and cash equivalents of an enterprise by the use of a money circulate statement that classifies cash flows during the interval from working, investing and financing activities. An enterprise should prepare a money circulate assertion in accordance with the necessities of IAS 7 and may current it as an integral a part of its financial statements for each period for which monetary statements are prepared.
Users of an enterprise’s financial statements are interested in how the enterprise generates and uses cash and money equivalents. This is the case regardless of the nature of the enterprise actions and irrespective of whether or not cash could be viewed 214 ASA University Review, Vol. 6 No. 2, July–December, 2012 as the product of the enterprise, as will be the case with a financial establishment. Enterprises want money for a similar purpose however totally different their principal revenue- producing activities could be.
They want cash to conduct their operations, to pay their obligations and to provide return to the buyers. Accordingly this normal requires all enterprises to present a money circulate (Para 1 & 3). Presentation of Cash circulate statement beneath IAS 7 Cash and money equivalent: The definition of money and money equivalent are central to the preparation and interpretation of cash circulate statements. Cash consists of money in hand and demand deposits, cash and notes of a company, and so forth. In our country deposits in postal accounts could additionally be termed as cash (Cooper and Ijiri, 1984: 88; Ghosh, 2001).
Cash equivalents are short-term, extremely liquid investments which might be readily convertible into identified amount of money and which are topic to an insignificant threat of change in value. According to the definitions of paragraph 6 of IAS 7 cash includes cash in hand and demand deposits; usually ‘cash on hand’ consists of currency, notes, and coin in the cash box of the enterprise. It additionally includes prize bond, negotiable cash orders, postal orders, and beneath posited checks, financial institution drafts or pay- order.
Demand deposits discuss with deposits in checking accounts in banks and other financial institutions that may be withdrawn without discover usually topic to deduction of excellent examine. Thus money equivalents – 1. are short-term investments but the ‘term’ ‘short’ not clearly specified, although a period of three months and fewer is usually recommended to be taken as short time period interval. 2. are extremely liquid investments. Here ‘liquid’ means having in a state of affairs the place money equivalents are available in adequate quantity to meet obligation of funds. . are investments that are both: (a) readily convertible, to known quantities of cash and (b) subject to an insignificant danger of change in value. According to SFAC No. 95, the risk categorically refers to threat of change in interest rate. The short-term investments are so close to their maturity that they characterize insignificant danger of changes in interest rate. Examples embrace treasury bills, industrial papers, and money market funds purchased with money that’s in extra of immediate wants.
However, although by definition, money equivalents check with short time period extremely liquid investments, they are normally held for the purpose of assembly brief time period cash commitments somewhat than for other function. For an investment to qualify as a money equal it must be readily convertible to a recognized amount of cash and be topic to insignificant threat of change in worth. Therefore an investment normally qualifies as a cash equivalent solely when it has a short maturity of, say, three months and less from the date of acquisition. Equity nvestments are excluded from the money equivalents unless they’re, in substance, money equivalents, for instance in the case of most popular share acquired inside a short period of their maturity and with a specified redemption date (Para 7). Cash Flow Statement Disclosures in Pharmaceutical Companies 215 Preparation of Cash flow statements IAS 7 requires money flows to be classified into operating, investing, and financing activities. Example of money flows by category Operating Activities Inflows Receipts from clients Outflows Payments to suppliers
Advance deposits from prospects Wages and salaries to workers Income tax refunds Income tax funds Interest received on customers’ notes or Other tax payments accounts Dividends and curiosity obtained from Interest paid on bank debt or bonds excellent and investments and included in determining web included in determining internet income income Investing Activities Cash obtained from sale of capital belongings Payments for purchase of capital property Cash from sale of debt or equity investments Cash flows capitalized as intangible belongings, similar to: · development costs · start-up costs · capitalized interest · exploration Costs Collection of principal on loans to others Purchase of debt or fairness securities of others Interest and dividends acquired on investments Loans extended to others and not included in figuring out web earnings Financing Activities Net proceed of issuing debt or equity securities Payment of principal on bonds or bank loans Cash proceeds received from bank loans Purchase of the entity’s personal shares Interest paid on bank debt or bonds excellent and never included in figuring out web income Dividends paid to shareholders Variations in Reporting actions for Cash flows A. Operating or Financing actions Transactions with different categories included in cash flows are categorised in a unique manner. According to IAS 7, Para 12, “A single transaction may embody money flows which would possibly be classified differently.
For instance, when the cash reimbursement of a mortgage consists of both interest and capital the interest factor may be categorised as operating actions and the capital quantity is classed as financing activities”. B. Operating or investing and financing actions Some cash flows may be categorized as arising from any activities similar to ‘interest’, ‘dividend’ ‘income tax’. The detailed provisions of those types are as follows. 216 ASA University Review, Vol. 6 No. 2, July–December, 2012 Interest: a. For a financial establishment, interest paid and curiosity obtained are normally classified as working money flows (para 33). b. For other enterprise, curiosity paid and interest obtained could also be categorized as working money flows as a outcome of they enter into the dedication of web revenue or loss.
Alternatively, interest paid could additionally be categorized as financing cash flows, because they are costs of acquiring monetary sources. Interest received may be categorised as investing money flows, because they are returns on investments (para 33). Dividend: a. For a financial establishment, dividends obtained are usually categorised as working money circulate (Para 33). b. For different enterprise, dividends obtained may be categorised as working money flows because they enter into the determination of web profit or loss. Alternatively dividend acquired may be classified as investing cash flows, as a end result of they’re returns on investments (para 33). c. Dividend paid could also be categorized as financing cash flows, because they’re costs of obtaining financial sources.
Alternatively dividend paid may be categorized as element of cash flows from working actions in order to help customers to determine the flexibility of an enterprise to pay dividend out of working cash flows (para 34). Income tax: a. Taxes on income come up on a transaction that offers to the money flows which might be categorised as working, investing, and financing activities in cash flow assertion. While tax expense could additionally be readily identifiable with investing or financing actions, the associated tax cash flows are sometimes impracticable to determine and will arise in a unique period from the money flows of the underlying transactions. Therefore taxes paid are often categorised as money flows from operating actions.
However, usually it’s practicable to establish the tax cash flow inside particular person transaction that gives rise to cash flows that are categorised as investing or financing exercise as appropriate. When tax money flows are allocated over more than one class of exercise, the total amount of taxes paid is disclosed (Para 36). In the light of SFAS 95, “Transaction that enter into the willpower of net income” are defined as operating activities and hence, curiosity acquired or paid, dividend received and taxes on income are rigidly handled to come up from operating actions. Dividend to stakeholders are treated as money outflows categorised as financing actions (Keiso and Weygandt, 1998: 1275-76) Cash move statement Practices in Bangladesh
Regulatory Framework, in the eyes of the Companies Act 1994 (Act no. 18 of 1994): According to Section 183 of the Companies’ Act 1994 (which came into impact from 1 January 1995), an organization is required to present balance sheet, profit and loss account (income and expenditure account, in case of non revenue companies). Under part 185, the stability sheet and the earnings statement need to be ready according to the forms set out in Part –1 and Part –2 of Schedule XI respectively beneath which info on consecutive two years (concerned yr and Cash Flow Statement Disclosures in Pharmaceutical Companies 217 preceding year) are to be supplied.
However according to note (g) of the overall instruction for preparation of balance sheet (given in part –1 of schedule XI after the horizontal format of the balance sheet), “a assertion of change in monetary place shall be included as an integral part of the financial statements, and shall be offered for each period for which the profit and loss account is prepared”. However no particular format of money flow statement has been prescribed in Companies Act 1994. In the sunshine of the Security and Exchange Rule 1987 (S. R. O No. 237-l/87 dated on 28 September 1987): Under the availability of rule 12 (1) of the Securities and Exchanges Rules (SER) 1987(amended by the part notification No.
SEC/ Section 7/SER/03/132 dated 22 october1997 published in the official gazette on 29 December 1997), the annual report back to be furnished by an issuer of listed safety shall embrace “a steadiness sheet, profit and loss account, money move assertion and notes to the accounts collectively hereinafter referred to as the monetary statement’. In the part III of the Schedule of the SER 1987, issues relating to curiosity paid on short-term borrowing, interest and dividend obtained income taxes are clearly guidelined. For instance, curiosity paid on short-term borrowing shall be a money outflow underneath operating actions; ‘interest and dividend received’ shall be a cash influx beneath investing activities. And ‘interest paid on long run borrowing’ and ‘dividend paid’ shall be a money outflow beneath financing activities.
Under paragraph 35-36, ‘taxes on income’ ought to be handled as working money outflow unless they can be identified in financing and investing actions. Findings of the examine To know the extent of money flows statement reporting practices by Pharmaceutical firms, a survey has been carried out overlaying twelve annual reviews (2009) (For detailed the name of the companies see Appendix-1). The major findings of the study are given under when it comes to common variations in reporting and voluntary disclosure. General findings It consists of the present format and construction of money circulate statement and the extent of compliance of IAS-7, followed by sample Pharmaceutical Companies in Bangladesh. All the sample firms put together money flow statement as required by IAS-7/BAS 7 adopted by the Institute of Chartered Accountant of Bangladesh and present it as an integral a part of the financial statements. Notes to cash flow assertion have been presented as part of the monetary statements in case of all of the sample companies. · The sample companies put together cash flow statement in vertical form and shows determine of money flows of the present year and the earlier 12 months. · All the pattern companies’ money move statement incorporates a classification of operational, investing, and financing activities. · The pattern companies did not illustrate the policy dopted in determining the formulation of cash and cash equivalents although that is required by paragraph 36 of IAS 7. 218 ASA University Review, Vol. 6 No. 2, July–December, 2012 Variation in Reporting Another objective of the survey was to determine which options, permitted by IAS-7, are used most in practice by Bangladeshi pharmaceutical firms. It is found that there aren’t many variations between companies in their reporting of money flow data. This is expected as a outcome of the preparation of cash move statement does not enable for so much of selections, differences of interpretation or different accounting treatments. The results are set out in desk 1.
Table-1 Variations in reporting [Cash circulate statement (CFS)] Factors 1 Notes to CFS Options Separately, following the CFS Part of the notes to the financial statements Incorporated within the CFS Total Direct technique Indirect methodology Total Operating actions or no interest Financing Investing activities Total Financing actions or no dividends Operating actions Investing activities Total Part of accounting coverage notice Nothing disclosed Total Operating actions or no tax Financing activities Investing actions Total Number of corporations zero 12 zero 12 12 0 12 12 0 0 12 12 0 0 12 12 zero 12 12 zero zero 12 2 Operating activities three Interest received and Interest paid 4 Dividend acquired and Dividend paid 5 Definition of cash and cash equivalents 6 Income tax Notes to table 1 · Refer to point 2 of Table 1.
According to IAS-7 and SEC Rule 1987, the enterprises are encouraged to report money flows from operating activities using the direct methodology. The direct methodology offers information which can be useful in estimating future cash flows which is not out there under the oblique technique. All the sample corporations adopted the direct technique in reporting working money flows. One company (Pharmaceutical Mithun Knitting & Dyeing Ltd. ) discloses cash flows from working activities under indirect method in notes of economic statements as further info. Cash Flow Statement Disclosures in Pharmaceutical Companies · · 219 Refer to factors three & four of Table 1.
All the businesses studied have shown ‘interest received and paid’ beneath operating activities and ‘interest paid on long term borrowing’ and ‘dividend paid’ underneath financing activities. Refer to points 5 & 6 of Table 1. All the businesses studied have proven “definition of money and cash equivalents” within the notes of accounting coverage and “income tax” under working actions. Voluntary disclosure The survey additionally included an examination of any further data that is disclosed concerning the company’s money move which is not required by IAS-7, but which can be helpful to the user. For example, separate disclosure of money flows will increase working capacity and money flows that maintain working capacity, disclosure of segmental cash flows, money circulate per share etc.
The survey found no company to disclose such further voluntary information in its money move statement. Conclusion and Recommendation A materially misstated cash circulate assertion, whether it is by way of incorrect classification in the classes or numerical accuracy, may be deceptive to the person and might result in incorrect decisions taken by the users of the statement. The survey has revealed that though sample companies put together cash flow assertion based on International Accounting Standard-7 (BAS-7), there’s also a level of non-compliance. It is, however, found that there usually are not many differences between companies of their reporting of cash circulate information.
This is predicted as a outcome of the preparation of cash flow statement does not allow for lots of selections, variations of interpretation or totally different accounting therapies. To make cash move statement more informative and useful for users, the companies should disclose further voluntary data such as money circulate per share in their cash move statements. Items consisting of cash flows from operating, investing and financing activities must also be clarified within the notes of the monetary statements. Due to the limited scope of the current examine, numerous analysis points haven’t been tried however are recognized in the midst of the research.
Disclosure practices of additional items other than operating, investing and financing actions, disclosure practices variations between listed and unlisted firms, disclosure practices variations between financial and different establishments are some such potential points for future research. 220 ASA University Review, Vol. 6 No. 2, July–December, 2012 References Annual Reports of Sample Pharmaceutical Companies Listed in Dhaka Stock Exchange and Chittagong Stock Exchange 2009. Aziz Uddin, A. B. M and Bala. , S. K. ( 2001), “Cash Flow Reporting in Bangladesh”, The Cost & Management, Nov- Dec. ICMAB, p. 13. FASB Discussion Memorandum (1980), Reporting Funds Flow, Liquidity and Financial Flexibility, FASB, Stanford. Thomas H. Beechy. Joan E. D. Conrod, Intermediate Accounting, second Edition, Chpter 5, Exhibit 5-1 pp. 91 Ghosh, Santi N. (2001),“Workshop Material on IAS # 7 : Cash Flow Statements” compiled beneath the Institute of Chartered Accountants of Bangladesh (ICAB)Project, Development of Accounting and Auditing Standards in Bangladesh, The World Bank. Government of Bangladesh (GOB) (1994), The Companies Act 1994 (Act No. 18 of 1994). Gup, B. E. & Samson, W. D. 1993. An evaluation of patterns from the assertion of money flows. Financial Practice & Education, 3(2):73-79. Hendrickson, Eldom. S(1982), Accounting Theory, Richard D. Irwin, Inc. , Illinois, p. 236. Hertenstein, J. & McKinnon, S. 1997. Solving the puzzle of the cash move assertion. Business Horizons, 40(1):69-76.
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Weygandt (1998), Intermediate Accounting, John Wiley & Sons, Inc. New York, ninth Edition, pp. 1275-76. Lee, T. A. 1982. Cash circulate accounting and the allocation downside. Journal of Business Finance & Accounting, 9(3):341-352. Lee, T. A (1972), “A Case for Cash Flow Reporting”, Journal of Business Finance, Vol. four, No. 2, pp. 27-36 as quoted in Studies of Accounting Theory, Steyn, B. W. & Hamman, W. D. 2003. Cash move reporting: are listed companies complying with AC 118? Meditari, eleven:167-180. Weygandt, Kieso, Kimmel, Accounting Principles, ninth version, John, Wilely and Sons, Inc, pp. 732-733 Wallace, R. S. O. and Choudhury, M. S. I. And Pendelbary, M. 1997), “Cash Flow Statements: An International Comparison of Regulatory Positions”, The International Journal of Accounting, Vol. 32, No, 1, pp. 1-22 Cash Flow Statement Disclosures in Pharmaceutical Companies 221 Appendix-1 List of the twelve Pharmaceutical companies studied. 1. 2. 3. 4. 5. 6. 7. eight. 9. 10. eleven. 12. GlaxcoSmithKline Bangladesh Limited (2009) The IBN SINA Pharmaceutical Industry Ltd. (2009) BEXIMCO PHARMACEUTICAL LTD. (2009) ORION INFUSION LTD. (2009) ACI Formulation Limited (2009) Ambee Pharmaceutical Limited (2009) Square Pharmaceutical Ltd. (2009) Libra Infusions Limited (2009) BEACOM Pharmaceuticals Limited (2009) Rahman Chemicals Limited (2009) Renata Limited (2009) Therapeutics (Bangladesh) Limited (2009)