FASB 95 Cash Flow Statement conversion to UCA
4.55
593 Reviews
In this 3rd course of the Cash Flow Statements Vs. Proxies for Risk Assessment Skill Series, participants will compare the FASB 95 and UCA cash flow statements, identify differences in account classification, and limitations of FASB 95 in identifying borrowing causes, debt service sources, and financing requirements, and learn to transform FASB 95 into UCA.
Certificate
1 credit or $295
Cost
1.5 - 2 Hrs.
Duration
1 hr.
Prep Time
1
Quiz
Overview
In this third session of the Course, which runs approximately two hours including a rest break, participants explore and compare the form and structure of the FASB 95 Statement of Cash Flows, which is a standard report in every financial package, with the form and structure of the UCA cash flow statement. They identify differences in account classification that have a material impact on one or more of the four sections of both cash flow statements - the operating cash flow section, the investment section, the related parties section, and the financing section. They identify the limitations in the FASB 95 Statement of Cash Flows in properly identifying the 1) borrowing causes, 2) cash sources of interest-bearing debt service, 3) the financing requirement or surplus, and 4) the sources of cash to meet a financing requirement for a borrower or prospective borrower. In addition, participants examine the steps required to quickly transform the FASB 95 Statement of Cash Flows to the UCA cash flow statement, thereby correcting the analytical flaws associated with the FASB 95 Statement of Cash Flows.
Who Should Attend
This Course is ideal for participants currently in or aspiring to enter the following job functions:
- Credit Management
- Commercial Credit Administration
- Commercial Real Estate Administration
- Commercial Loan Administration
- C & I Lending
- CRE Lending
- Corporate Lending
- Private Banking
- Loan Review
- Special Assets
- Internal Audit
- Construction Lending
- Non-Profit and Municipality Lending
- Health Care Provider Lending
- Specialized Lending
- Credit Analysis
Prerequisites
A sound working knowledge of the construction and use of the UCA cash flow statement as well as general familiarity with the FASB 95 Indirect Statement of Cash Flows and, preferably, participation, in Sessions 1, 2, and 3 of the Course.
Objectives
By the end of the session, participants will be able to:
- Identify the purpose, composition, and structure of the FASB 95 Statements of Cash Flows and the manner in which its composition and structure, in particular, differ from the composition and structure of the UCA cash flow statement.
- Identify and appreciate the cash flow impact resulting from the difference in classification of distributions on a) operating cash flow in the FASB 95 Statements of Cash Flows and on b) operating cash flow in the UCA cash flow statement.
- Identify the cash flow impact resulting from the difference in classification of loans to and from owners on a) operating cash flow in the FASB 95 Statements of Cash Flows and on b) operating cash flow in the UCA cash flow statement.
- Identify the cash flow impact resulting from the difference in classification of short-term credit lines on a) operating cash flow in the FASB 95 Statements of Cash Flows and on b) operating cash flow in the UCA cash flow statement.
- Identify and provide reasons for the likely different conclusions and messages about a borrower's ability to service its interest-bearing debt based on the FASB 95 Statements of Cash Flows versus a UCA cash flow statement.
- Identify the steps necessary to quickly conform the FASB 95 Statement of Cash Flows to the UCA cash flow statement, thereby correcting the analytical flaws in the FASB 95 Statement of Cash Flows.
Materials(access provided with registration)
- Credit Refresher on FASB 95 Statement of Cash Flows
- Financial Statements
- Exercise for the Webinar
- Webinar Presentation Slides
- Webinar Poll Questions
- Webinar Poll Solutions
- Exercise Solutions
This is Course 3 of 4 in the Cash Flow Statements Vs. Proxies for Risk Assessment Skill Series
UCA Cash Flow, Traditional Cash Flow and EBITDA
Cash Impact Analysis and Management Assessment
FASB 95 Cash Flow Statement conversion to UCA
Cash Flow Proxies, Debt Capacity, and the UCA Cash Flow Statement
