Budgeted financial statements are compiled from the annual budgeting model of a business. They are useful for estimating the financial results, financial position, and cash flows of a business as of various dates in the future. In this chapter we will consider the following contents: Statement of financial performance , statement of financial position , cash flow statement . | Chapter 5 Budgeted financial statements 5- Budgeted financial statements Statement of financial performance Statement of financial position Cash flow statement The above budgets summarise the forecasts made in all other budgets. 5- Budgeted statement of financial performance is a summary of the following budgets Sales and/or fees Cost of goods sold Operating expenses marketing administration financial This budget is not affected by GST accounts. 5- Budgeted statement of financial position This budget is prepared from asset, liability and owners equity accounts. If GST payable is >GST input tax credits, the net GST payable is shown as a current liability. If GST payable is 5- Preparation of statement of financial position Examples of the information needed: Net profit or loss Accounts receivable balance Accounts payable balance Pattern of paying expenses Rates and methods of . | Chapter 5 Budgeted financial statements 5- Budgeted financial statements Statement of financial performance Statement of financial position Cash flow statement The above budgets summarise the forecasts made in all other budgets. 5- Budgeted statement of financial performance is a summary of the following budgets Sales and/or fees Cost of goods sold Operating expenses marketing administration financial This budget is not affected by GST accounts. 5- Budgeted statement of financial position This budget is prepared from asset, liability and owners equity accounts. If GST payable is >GST input tax credits, the net GST payable is shown as a current liability. If GST payable is 5- Preparation of statement of financial position Examples of the information needed: Net profit or loss Accounts receivable balance Accounts payable balance Pattern of paying expenses Rates and methods of depreciation Any acquisition or disposal of assets Any drawings made by the owner Any capital contributions made by the owner 5- Budgeted statement of cash flows Is a cash budget in a format that complies with either AAS28 or AASB1026. If the GST payable is >input credits receivable in the relevant period the resultant amount is paid to the ATO. If the GST payable is 5- The budgeted cash flow statement is divided into 3 main categories Operating activities: provision of goods and services. Investing activities: acquisition and disposal of non-current assets. Financial activities: changes to the financial structure of the business. 5- Classification of cash inflows outflows Creditors for interest Sale of G &S Other expenses Suppliers of stock employees Operating activities Dividends received Interest received Government For taxes 5- Classification of cash inflows outflows .
