need some help from accounting experts / gurus.

moya asia financial statement is abit confusing. i thought usually cash flow from operations is the net profit before tax.

moya asia statement uses receipt received from customers instead of net profit before tax..

in this case the net profit before tax is more than cash flow in, which means they book some rev and net profits that's not received in cash?

can explain?

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sadisticnoob

To answer your question,

There are 2 ways to present CF

Most companies adopt the indirect method to present CF. Moya uses direct method of Cash flow statement to provide CF. IIRC, the receipt of the 113K includes income accrued (i.e not paid from last quarter). Its okay to book revenue that is not paid because we cant expect most companies to pay up upon the issue of invoice. There is usually a terms of payment.

Will provide the CF recon if i can do it later.

NPAT also includes an interest element which is found in the investing and financing activities of CF. So you must shift the interest upwards from the investing and financing side to the Operating

@clim

Im not a pro, still considered green horn.

clim

Reply to @sadisticnoob : hehe thanks bro. but at least u r working in the field ma, whereas we are all outsiders. :)

clim

Lai la. mai gong bo jio.

i refer u a real pro. any accounting issue ask real pro.

@sadisticnoob

losemoneyinvestor

To add you can never book a revenue just because you receive cash or AR. It's accrued accounting that one has to consider. the form to which revenue exists is rather immateria

clim

Reply to @losemoneyinvestor : Flattery no cure. Bill sent!

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Opportunist

https://www.accountingcoach.com/blog/direc...

there are two methods to do cashflow. they using the not so common one.

Opportunist

Reply to @Songfabkt : those were the days when we play dota on warcraft3.

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