The financial statement is one of the essential elements of the evaluation process. Leanus processes the financial statement with different methodologies for each accounting period be it 12 months or shorter.
The reform of the financial statements envisaged by Legislative Decree 139/2015 has introduced important changes to the statutory structure of the financial statements as known; one of the cornerstones of this reform is certainly the introduction, to art. 2425-ter, of the cash flow statement among the mandatory formats for companies that prepare financial statements in ordinary form as well as in the consolidated financial statements.
The legislator with this modification has provided an important analysis tool to the company's stakeholders, with the aim of overcoming the "traditional" income / balance sheet vision of the financial statements, moving the survey on the company's ability to generate (or absorb) financial resources.
The reasons that lead to analyze the company from a financial perspective are strictly related to a concept as obvious as it is neglected in the national business panorama: as repeatedly demonstrated by the recent economic situation, holding large assets and illiquid assets (for example of a real estate nature) in no way does it ensure the solvency of the company itself with respect to the financial commitments undertaken with credit institutions. At the same time, a positive income situation does not exempt the company from situations of financial tension, which may derive (for example) from problems in the solvency of debtors or from the repayment of loans exceeding the cash flow produced by the company itself.
Leanus prepares the financial statement both through the Indirect method that through the analysis of details of the financial flows and the CCNO
Examples of both schemes are shown below
Cash Flow Statement with the Indirect Method
To prepare the cash flow statement with the indirect method it is necessary to reclassify at least two accounting periods using the management income statement and balance sheet formats (Sources-Employment).
As indicated in the note below, the cash flow for the period it is calculated with respect to the last period of the previous financial year. Therefore, in the event of a presence on 31.12.2015, 30.09.2016 (9) and 31.12.2016, the 2016 cash flow will be calculated on the basis of the comparison with 31.12.2015. In the case of sequences of periods of equal duration, the period report is drawn up on the basis of the immediately preceding period (see exception).
Only a selection of the graphs available in the Menu is shown
Cash Flow Statement using the cash flow method and the CCNO
Also to prepare the Cash Flow Statement with the cash flow method and the CCNO you must have at least two accounting periods.
Operating cash flow NO corresponds to Profit + Depreciation, except in the (unusual) case in which there are no changes in operating capital (Customer Receivables, Suppliers Payables, Inventories) and Other (Other Payables, Other Receivables)
To process the Operating Cash Flow correctly the data source (input balance sheet or other) must contain the details of the items that make up the working capital.
The previous image shows that only if the working capital does not undergo variations, then Net Profit + Depreciation corresponds to the Operating working capital calculated in both ways.