Two methods are used when reporting cash flows from operating activities: the direct method or the indirect method, both are acceptable from IAS with a preference of direct method. Thus, this paper examines which method of reporting the statement of cash flows provides useful information the decision makers rely on for decision making purposes. To achieve this aim, participants were selected fr...

This paper surveys the main concepts and techniques of recent developments in the modeling of the term structure of interest rates that are used in the risk management and valuation of interest-rate-dependent cash flows. These developments extend the concepts of immunization and matching to a stochastic interest rate environment. Such cash flows include the cash flows on assets such as bonds an...

Last month, in this magazine, this author argued in Fixing Financial Statements: Financial Statement Overhaul that the traditional formats of the primary financial statements—income statement, balance sheet, and cash flow statement—need major redesign to again be useful for meaningful financial analysis, decision-making and value creation. Since the fundamental objective of a business is to inc...

In all large scale projects, there correspond cash flows that incur throughout the life of the project. The scheduling of these projects to maximize the present value of the cash flows has been a topic of recent research. The basic assumption of earlier research is that the cash flows are mainly associated with some events of the project and they occur at the event realization times. However, i...

in this paper disposition effect, selling winners and holding losers, in tehran stock exchange (tse) investment companies and its effect on these companies’ cash flows and performance using odean model has been reviewed and investigated. research findings show that the realized profit ratio is %19 higher than the realized loss ratio in all of investment companies in tse. this mean there is a be...

after-tax cash flows to differ from its before-tax cash flows. To estimate the future cash flows that are to be generated by a proposed foreign project (such as the establishment of a new subsidiary or the acquisition of a foreign firm), MNCs must first estimate the taxes that they will incur due to the foreign project. This appendix provides a general background on some of the more important i...

Service firms seek customers with high revenues, profits, or lifetime value. However, they frequently ignore variations in consumption that lead to cash flow variability and adversely influence service operations and financial performance. This study shows that variation in individual customers’ consumption or spending on services can be decreased in ways that are actionable by most managers, w...

A classical problem, coming up frequently in practical business, is the valuation of future cash flows which are somewhat risky. By the term “risky” we mean that the payment is not of a deterministic nature; rather there is some uncertainty on the amount of the future cash flows. Of course, in real life virtually everything happening in the future contains some elements of riskiness. As a first...