[Anonymous]

Hi Jeff,

Please clarify this for me. Thank you so much.

(1)

Per NINJA

Taxes Paid

-CFI

Per Becker:

Taxes Paid:

-CFO under US GAAP

-CFO or CFI, or CFF under IFRS

(2)

NINJA notes say cash paid on loans are classified under Investing Activities.

I thought paying principal related to bonds and loans falls under Financing Activities?

(3)

What is the “Loan PRINCIPLE” (page 96 on NINJA FAR 2014) being referred to under the Investing Activities laid out on NINJA Notes?

[samdiegoCPA]

What I know is Dividends Paid are F for GAAP and IFRS. Going off that:

Div Rec: I or O

Int Paid: F or O

Int Rec: I or O

Taxes Paid: I, F, O

GAAP are all O.

C&P from my notes:

Investing:

-Changes in NON-CURRENT assets.

-Purchase or sale of PPE and Marketable Securities. (excluding trading as current)

-Depreciation and/or Accumulated Depreciation on assets disposed of.

-Gains/losses on assets disposed of.

-Acquisition of a CD greater than 3 months.

-Purchase/sale of investment in stock.

Financing:

-Changes in NON-CURRENT liabilities and stockholder’s equity.

-Issuance of bonds.

-Issuance of stock.

-Purchase of treasury stock.

-Borrowing funds.

-Paying back principal related to bonds and loans.

-Collection of N/R.

-Dividends PAID.

AUD: 84
REG: 84
BEC: 79
FAR: 83

[samdiegoCPA]

What I know is Dividends Paid are F for GAAP and IFRS. Going off that:

Div Rec: I or O

Int Paid: F or O

Int Rec: I or O

Taxes Paid: I, F, O

GAAP are all O.

C&P from my notes:

Investing:

-Changes in NON-CURRENT assets.

-Purchase or sale of PPE and Marketable Securities. (excluding trading as current)

-Depreciation and/or Accumulated Depreciation on assets disposed of.

-Gains/losses on assets disposed of.

-Acquisition of a CD greater than 3 months.

-Purchase/sale of investment in stock.

Financing:

-Changes in NON-CURRENT liabilities and stockholder’s equity.

-Issuance of bonds.

-Issuance of stock.

-Purchase of treasury stock.

-Borrowing funds.

-Paying back principal related to bonds and loans.

-Collection of N/R.

-Dividends PAID.

AUD: 84
REG: 84
BEC: 79
FAR: 83

[Anonymous]

@Sam, your notes are very helpful. Thanks.

On my old little note, I wrote collection of NR under investing activities. Are you sure it falls under Financing? Remember, NR is a non-current asset?

One other thing, on Becker's page F7-43:

Financing > All sums BORROWED &/or repaid (principal only) [Borrowed principal is Notes/Bonds Payable]

Investing > All sums LENT &/or repaid (principal only) [Lent principal is Notes Receivable]

Ergo, should NR fall under Investing?

[Anonymous]

@Sam, your notes are very helpful. Thanks.

On my old little note, I wrote collection of NR under investing activities. Are you sure it falls under Financing? Remember, NR is a non-current asset?

One other thing, on Becker's page F7-43:

Financing > All sums BORROWED &/or repaid (principal only) [Borrowed principal is Notes/Bonds Payable]

Investing > All sums LENT &/or repaid (principal only) [Lent principal is Notes Receivable]

Ergo, should NR fall under Investing?

[samdiegoCPA]

Let me look into this… helping you is helping me too! I have a super hard time with SCF. Makes zero sense to me.

AUD: 84
REG: 84
BEC: 79
FAR: 83

[samdiegoCPA]

Let me look into this… helping you is helping me too! I have a super hard time with SCF. Makes zero sense to me.

AUD: 84
REG: 84
BEC: 79
FAR: 83

[samdiegoCPA]

Found this from Wiley, I am pretty sure you are right.

b. Investing activities include the acquisition and disposition of long-term productive assets or securities that

are not considered cash equivalents.

(1) Investing activities also include the lending of money and collection on loans.

c. Financing activities include obtaining resources from owners and returning the investment.

(1) Also included is obtaining resources from creditors and repaying the amount borrowed.

Maybe I meant N/P but put N/R instead?! If I had it on an exam asking “Where does the collection of N/R fall under?” I would put Investing only because I would think non-current asset.

AUD: 84
REG: 84
BEC: 79
FAR: 83

[samdiegoCPA]

Found this from Wiley, I am pretty sure you are right.

b. Investing activities include the acquisition and disposition of long-term productive assets or securities that

are not considered cash equivalents.

(1) Investing activities also include the lending of money and collection on loans.

c. Financing activities include obtaining resources from owners and returning the investment.

(1) Also included is obtaining resources from creditors and repaying the amount borrowed.

Maybe I meant N/P but put N/R instead?! If I had it on an exam asking “Where does the collection of N/R fall under?” I would put Investing only because I would think non-current asset.

AUD: 84
REG: 84
BEC: 79
FAR: 83

[Anonymous]

Sure. SCF should be easy, but with so many little (crazy) details about SCF, anyone can trip up so quick. I trip up myself so quick. Just 10 minutes ago as I was trying to recall, I asked myself, “What's the method being encouraged by both US GAAP and IFRS?” I just tripped up with my dog's toys lying on the floor, then things deemed doubtful to me in a snap.

I had to double check with my text again. LOL.

How many times should I remind myself of this little nugget?

So it's direct method! US GAAP and IFRS encourage it, but most entities prefer Indirect Method.

How will I keep it straight in the actual test without tripping up again under time pressure?

-Direct Method

-US GAAP

-IFRS

“DUI” > US GAAP & IFRS are both alcoholic! They were pulled over by a police and got arrested for DUI!

Good for them!!

[Anonymous]

Sure. SCF should be easy, but with so many little (crazy) details about SCF, anyone can trip up so quick. I trip up myself so quick. Just 10 minutes ago as I was trying to recall, I asked myself, “What's the method being encouraged by both US GAAP and IFRS?” I just tripped up with my dog's toys lying on the floor, then things deemed doubtful to me in a snap.

I had to double check with my text again. LOL.

How many times should I remind myself of this little nugget?

So it's direct method! US GAAP and IFRS encourage it, but most entities prefer Indirect Method.

How will I keep it straight in the actual test without tripping up again under time pressure?

-Direct Method

-US GAAP

-IFRS

“DUI” > US GAAP & IFRS are both alcoholic! They were pulled over by a police and got arrested for DUI!

Good for them!!

[Author]

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