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SFAS
No. 17 Cash
Flow Statements |
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 Status |
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Revised by the
Financial Accounting Standards Committee In Taiwan on 22 September
2005 |
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Summary |
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The purpose of this Standard is to
establish the accounting standards for preparation of |
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a cash flow statement. |
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A cash flow
statement referred in this Statement are
defined as cash provided and used |
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by operating, investing, and financing activities for a
period, in a format according to: (a) |
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operating activities; (b) investing activities; or (c)
financing activities; and also report on the |
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separate net cash flows and aggregate total of those three
activities. |
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The term “cash” used in this Statement includes cash on
hand, demand deposits, check |
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deposits, cancellable time deposits, negotiable
certificates of deposit and cash equivalents. |
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Operating activities of an enterprise |
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When reporting cash flows from operating activities,
enterprises shall select either the direct |
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or indirect method. |
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(a) Direct method. The direct method shows the
various components of cash i
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nflows and outflows resulting from operating activities in the
current period, |
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by directly adjusting each item relating to operating activities in
the income |
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statement from an accrual basis to a cash basis. |
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(b) Indirect method. The indirect method
adjusts the current period net income
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for revenue and expense items of a non-cash nature, for changes in
the
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amounts of current assets and current liabilities accounts relating
to profit |
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and loss, and for gain and loss items relating to disposal of assets
and |
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repayment of debt, to arrive at net cash flows generated from
operating |
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activities in the current period. |
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Investing activities of an
enterprise |
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Cash inflows from investing activities
commonly include: |
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(a) cash receipts from collection of loans and
disposal of debt instruments;
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(b) cash proceeds from the disposal of equity
securities; |
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(c) cash receipts from the disposal of property,
plant and equipment; |
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(d) cash receipts from futures contracts, forward
contracts, swap contracts, |
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option contracts and other similar financial instruments.
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Cash outflows for investing activities
commonly include: |
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(a) cash payments for providing loans and for
acquisition of debt instruments of
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other enterprises; |
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(b) cash payments to acquire equity securities of
other enterprises; |
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(c) cash payments to acquire property, plant and
equipment. |
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(d) cash payments for futures contracts, forward
contracts, swap contracts, |
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option contracts and other similar financial instruments.
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Financing activities of an
enterprise |
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Cash inflows from financing activities
generally include: |
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(a) cash proceeds from capital increase by issuing
new shares; and
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(b) cash proceeds from issuing loans. |
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Cash outflows for financing activities
generally include:
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(a) cash payments of dividends, purchase of
treasury shares or repatriation of
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capital; |
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(b) cash repayments of amounts borrowed; and |
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(c) cash repayments of principal amounts for
extended loans. |
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This Statement also specifies
disclosures about cash flow statements. |
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Effective
date
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This Statement becomes effective for
the fiscal year ending on and after December 31, |
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2000.
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