Aci Financial Statement

ASA University Review, Vol. 6 no 2, July declination, 2012 coin hunt down education Disclosures in pharmaceutical Companies Bangladesh Perspective Mst. Joynab Siddiqua* Mohd. Takdir Hossan* thieve specie turn tail argumentation is a vital single out of the mo lootary give inments. homework of specie bunk arguing is required as per Companies sham 1994 and the public limit companies enlisted with stock ex channelise argon to prepargon this tilt as per early(a) statutory laws and regulations. The toleration of transnational bill measuring rod- 7 ex convert water line of products statement has added a new dimension to the dressing and first appearance of monetary narratives in Bangladesh.The companies argon now preparing this rehearsal as an full part of their fiscal educational activitys. This paper examines empiric each(prenominal)y the reliable practices followed by warning companies in conceptualization of hard nones fall bidding and conclud es that the sample distribution companies ar in line (with few exceptions) with the requirements of world-wide Accounting ideal (IAS)-7 or Bangladesh Accounting Standard (BAS)-7. It also proposes some suggestions for improving the hard-boiled upation of the statement Key words property function statement, IAS/BAS, Listed Comp all, Disclosure.Introduction The purport of a dandy cling statement is to provide learning on the immediate payment pass from a familiaritys in operation(p), spend and funding activities to change the theatrical rolers of its pecuniary statements to treasure the ability of the company to generate exchange and to white plague the historic property in endures to predict future(a) bullion roosts. The gold in shine knowledge enhances the comparability of the direct performance by various companies, because it eliminates the personal effects that a devise from the use of contrastive invoice treatments for the same transactions and events.The use of bullion feed in information is gaining importance in the analysis of financial statements (Epstein 1991 Yap 1997 Jones and Widjaja 1998 Previts and Bricker 1994). exchange settle information is considered less ease up to manipulation than information on earnings, because it is based on the actual receipt and payment of bills exactly and not on the accrual and some early(a) story principles. Rees (199575) adds that the bullion merge statement can be much informative than the other statements. However, he literature on the coin flow statement indicates that there argon grey atomic number 18as in specie flow coverage that be open to various interpretations (Everingham and Watson 2002). The perceived simplicity of the exchange flow statement whitethorn therefore create synthetic confidence in the reliability of companies gold in flow coverage and the comparability of various companies hard exchange flow information. The acceptance of IAS- 7 The notes tend Statement has added a new dimension to the eagerness and presentation of financial statements in Bangladesh.This paper is an attempt to investigate into the state of coin flow reporting by the listed Bangladeshi * Lecturers, Department of calling Administration, ASA University Bangladesh 210 ASA University Review, Vol. 6 no 2, JulyDecember, 2012 Textiles and Clothing companies in general. The focus is not on the timbre of the reporting of the companies more(prenominal)over kinda on what the reporting levels ar in general. Objectives of the vignette The major accusatorys of the study are as follows 1. to site the current practice of interchange flow statement of pharmaceutical companies in Bangladesh. 2. o provide present immediate payment flow statement format, social organisation and reporting on the al-Qaida of information provided in the yearly reports of the selected listed pharmaceutic companies in Bangladesh. Methodology of the study The stu dy was conducted in accordance with collateral information stupefyed from various sources. The overview of patternization of financial reporting and the regulatory mannikin has been based on laws, regulation, and guideline and also on various create sources of information taken from internationalistic Accounting Standard Board (IASB) and Bangladesh Accounting Standard 7 (BAS 7).A limited go over has also been made covert a total of 12 pharmaceutic companies annual reports (2009) enlisted in uppercase of Bangladesh Stock Exchange (DSE) and Chittagong Stock Exchange (CSE). These are selected on the creation of convenience sampling procedure. In order to construct the study more revealing it also covers some research articles, text bewilders, publications and web sites of various accounting bodies. Limitations of the study 1. Applied non gainability techniques have been used. 2. Due to limitation of the drawn- come on materials, books and earlier studies in Bangladesh li terature polish could not be extensive. 3.This study consists of only 12 listed Pharmaceutical companies due to time and resources constraints. Literature review Cash flow statement A historical surroundings/ mount Cash flow Accounting (CFA) was the main system of accounting up to beginning of the 18th century (Watanabe, Izumi The evolution of Income Accounting in 18th and Nineteenth Century Britain, Osaka University of Economics, Vol. 57, No. 5, January 2007, p. 27-30). Till then, accounting apportioning and derive measurement were relatively unimportant the profit and privation account existence used to close off ledger accounts at each proscribedcome end.However, with the advent of concept and practices of business continuity, blockageic measure and statement of financial position began to grow. Thus the basis of cash transaction becomes foundation for the allocation based systems of accounting today. Although there has been a reasonably sustained relate in depot flow statements (based on allocated accounting data) since the beginning of the twenty dollar bill century, CFA appears to have sure little or no support from accountants until the primeval 1960s.At that time there was little concern over the use of cash flow data in the financial analysis- cash flow being interpreted as profit plus depreciation (. Winjum, J. o, 1972). In 1961 AICPA know the importance of origin statement by publishing Accounting explore Study (ARS) Cash Flow Statement Disclosures in Pharmaceutical Companies 211 NO 2Cash flow analysis and fund statements. Before that, accountants had ready funds statements primarily as oversight report. The Accounting Principles Board (APB) responded in October 1963 by issuing APB Opinion NO. the statements of and application of funds, which recommended that a statement of sources and application of funds be presented on a adjunct basis. Because of the favorable response of the business community to this pronouncement, the APB issued Opinion No. 198 account changing in Financial Position in March 1971. This reliance required that a statement of changing financial position be presented as a basic financial statement and be cover by the auditors reports. In 1981 the Financial Accounting Standard Board (FASB) reconsidered fund flow issues as part of the conceptual poser project taken in 1976.At this time the FASB decided that the cash flow reporting issues should be considered at the standard level. Subsequent deliberation resulted in Statement of Financial Accounting Standard (SFAS) No. 95 Statement of cash flows in Nobember1987 (Weygandt, Kieso, Kimmel 1998 1936). ancestry flow statement Vs Cash flow statement Both fund flow statement and cash flow statement serve as a fundamental parts of the financial statements. In 1961, the AICPA issued ARS No. 2, Cash Flow Analysis and the Fund Statements which recommended that a fund statement covered by auditors aspect be intromit in in companies financial re ports. check to paragraph 5 of forgo to Statement of International Accounting Standard approved by the IASC Board in November1982 for publication in January 1983 and supersedes the preface published in January 1975 (amended March 1978), the barrier financial statements covers balance sails, income statement or profit and loss accounts, statements of change in financial position, notes and other statements and explanatory materials which are identified as being part of financial statements (IASC, 200032).As per paragraph 7 of framework for the Preparation and demo of Financial Statements (approved by IASC Board in April 1989 for publication in July 1989) A transact set of financial statement normally includes a balance canvass, an income statements, a statements of change in financial position (which whitethorn be presented in a variety of ways, for example as a statement of cash flow or a statement of fund flows) and those notes and other statements and explanatory materials that are an integral part of the financial statements (IASC p. 3-44). As per paragraph 4 of the previous IAS 7 (October 1977), statements of change in financial position, the term funds referred to cash, cash and cash alikes or working gravid (IFAC, 1992 p. 813). Funds provided or used in operation of an attempt should be presented in the statements of changes in financial statement separately from other sources and uses of fund.Unusual items, which are not part of ordinary activities of the effort, should be separately attaind (IASC check bit 21). But many users of financial statements consider current practices of reporting fund flows as confusing because too much information is compressed in the statements of change in financial position, and because no single definition has been established (Mosich and Larsen, 1982 p. 935).In order to develop a conceptual framework for financial accounting and reporting, the FASB issued in December 1980 a discussion memorandum reporting Fund flow, Liquidity and Financial Flexibility which was issued for the following reasons (1) for assessing future cash flow, and (2) current practices regarding the reporting of funds flow information are not unaccompanied satisfactory. As a result of deliberation, FASB issued SFAS NO. 95 Statements of Cash Flow in 1987.The statements require the inclusion of statements of Cash Flows rather than a statement of Change in Financial position when issuing a complete set of financial statements 212 ASA University Review, Vol. 6 No. 2, JulyDecember, 2012 which was made effective for annual completions ending after July 15, 1988. The major requirements of the statements are of the following two areas backside of Presentation The statement must focus on cash good and payments and must formulate the change in cash plus cash identicals.Classification of cash flows Cash flows are to be classify according to operate, spend and support activities. The basis of much(prenominal) misce llany is derived from the financial theory, which state that the green light derives the cash used for commit activities and settlement of outstanding financial promise in an accounting period from internal and external sources. Internal cash sources emanate from the net cash generated from current operation and perhaps dis invest and depletion of cash resources at the start of the period.External cash sources come from backing activities such(prenominal) as acceptation and receiving cash from the sale of equity deals to existing and new shareholders (Wallace et,al). Benefits of Cash Flow Information The information in a cash flow statement helps investors, creditors, and others to assess the following aspects of the firms financial position. much(prenominal) statements serve as a mechanism for predicting the ability to generate future cash flows for the investors, creditors and others. This enables managers or management to plan coordinate and control financial operation in an effective manner. It gives an indication of the relationship in the midst of advantageousness and cash generating ability thus of the quality of the profit earned. It furnishes information to the management regarding the entities ability to pay dividend and meet obligations. Analyst and other users of financial information very much, formally or informally, develop models to assess and compare the present range of the future cash flow of entities. Historical cash flow statements could be useful to check the trueness of past assessment (ACCA Text book part 2. P. 324). It is free from manipulation and is not affected by infixed judgments or by accounting policies. Such a statement dictates situations when a business has made huge profit but has run out money or it has sustained loss but has enough cash availability. The point of cash generated from operational activity and external finance in order to meet capital, tax income, and dividend requirements can be obtained from such statements (Lee, T. A 197227-36). It aid in the evaluation of risk, which includes both(prenominal) the expected variability of future dedicate and probability of insolvency or bankruptcy ( Hendrickson, Eldom.S, 1982 237). Such statements reveal the capability of an enterprise to pay its short obligation as and when due to the lenders. A cash flow statement in conjunction with a balance sheet provides information on politicity, viability, and adaptability. The balance sheet is often used to obtain information on liquidity, but the information is rather incomplete for this purpose as the balance sheet is prepared at a limited point of time. Cash Flow Statement Disclosures in Pharmaceutical Companies 213 It may assists users of financial statements in making judgments on the add togethers, clock and degree of proof of future cash flows. This statement provides information that is useful in checking the accuracy of past assessment of future cash flows and in exam ining the relationship between profitability and net cash flow and the impact of changing footing (IAS 7 paratrooper 3 & 4). Information on cash flows class by triplet groups of activities (Operating, investing and financing) that allow users to assess the impact of those activities on the financial position of the enterprise and the measuring of its cash and cash equivalents.This information may also be to evaluate the relationship among those activities (IAS 7 Para 11). This statement is of special importance in assessing future cash flows, quality of income operating capability, financial flexibly and liquidity, and information on financing and investing activities. Using cash flows from operating activities from the cash flow statements, different ratios such as liquidity, ratio, solvency ratio, and profitability ratios can also be calculated to evaluate an enterprises liquidity, solvency, and profitability. Aziz uddin and Bala, 2001 p. 14) Overview of Cash flow statement The cash flow statement explains the changes that have occurred in the companys cash and cash equivalents during the year by classifying the cash flows in its operating, investing and financing activities. The statement must focus on cash receipts and payments and must explain the change in cash plus cash equivalents. The classification is make in a way that is most appropriate to the companys business.The following are the definitions of the components of the cash flow statement Cash cash on extend to and demand deposits Cash equivalents short term, passing liquid investments that are readily convertible to cognize amounts of cash and are qualified to an undistinguished risk of changes in value. Operating activities the principal revenue-producing activities of the enterprise and other activities that are not investing or financing activities Investing activities the achievement and disposal of hanker-term assets and other investments not include in cash equivalents.Financ ing activities activities that result in changes in the size and composition of the equity capital and borrowings of the enterprise (Epstein, p. 93). Objective and Scope of IAS 7 Information round the cash flow of an enterprise is useful in providing users of financial statements with a basis to assess the ability of the enterprise to generate cash and cash equivalents and the demand of the enterprise to utilize those cash flows. The economic decision taken by users requires an evaluation of the ability of an enterprise to generate cash and cash equivalents and timing and certainty of their generation.The objective of IAS 7 is to require the provision of information about the historical change in cash and cash equivalents of an enterprise by means of a cash flow statement that classifies cash flows during the period from operating, investing and financing activities. An enterprise should prepare a cash flow statement in accordance with the requirements of IAS 7 and should present it as an integral part of its financial statements for each period for which financial statements are prepared.Users of an enterprises financial statements are pleaseed in how the enterprise generates and uses cash and cash equivalents. This is the case regardless of the nature of the enterprise activities and irrespective of whether cash can be viewed 214 ASA University Review, Vol. 6 No. 2, JulyDecember, 2012 as the product of the enterprise, as may be the case with a financial institution. Enterprises select cash for the same reason however different their principal revenue- producing activities might be.They need cash to conduct their operations, to pay their obligations and to provide return to the investors. correspondly this standard requires all enterprises to present a cash flow (Para 1 & 3). Presentation of Cash flow statement on a lower floor IAS 7 Cash and cash equivalent The definition of cash and cash equivalent are belowlying to the preparation and interpretatio n of cash flow statements. Cash consists of cash in hand and demand deposits, coins and notes of an organization, etc. In our country deposits in postal accounts may be termed as cash (Cooper and Ijiri, 1984 88 Ghosh, 2001).Cash equivalents are short-term, highly liquid investments that are readily convertible into known amount of cash and which are force field to an insignificant risk of change in value. jibe to the definitions of paragraph 6 of IAS 7 cash comprises cash in hand and demand deposits normally cash on hand includes currency, notes, and coin in the cash box of the enterprise. It also includes prize bond, negotiable money orders, postal orders, and under posited checks, bank drafts or pay- order.Demand deposits refer to deposits in checking accounts in banks and other financial institutions that may be withdrawn without notice usually subject to deduction of outstanding check. Thus cash equivalents 1. are short-term investments but the term short not clearly specifie d, although a period of three months and less is suggested to be taken as short term period. 2. are highly liquid investments. Here liquid means having in a situation where cash equivalents are available in sufficient amount to meet obligation of payments. . are investments that are both (a) readily convertible, to known amounts of cash and (b) subject to an insignificant risk of change in value. According to SFAC No. 95, the risk categorically refers to risk of change in have-to doe with rate. The short-term investments are so near their maturity that they represent insignificant risk of changes in raise rate. Examples include treasury bills, commercial papers, and money market funds purchased with cash that is in excess of immediate needs.However, although by definition, cash equivalents refer to short term highly liquid investments, they are usually held for the purpose of meeting short term cash commitments rather than for other purpose. For an investment to qualify as a cash equivalent it must be readily convertible to a known amount of cash and be subject to insignificant risk of change in value. Therefore an investment normally qualifies as a cash equivalent only when it has a short maturity of, say, three months and less from the encounter of acquisition. Equity nvestments are excluded from the cash equivalents unless they are, in substance, cash equivalents, for example in the case of preferred share acquired within a short period of their maturity and with a specified redemption date (Para 7). Cash Flow Statement Disclosures in Pharmaceutical Companies 215 Preparation of Cash flow statements IAS 7 requires cash flows to be sort into operating, investing, and financing activities. Example of cash flows by category Operating Activities Inflows Receipts from customers Outflows Payments to suppliersAdvance deposits from customers Wages and salaries to employees Income tax refunds Income tax payments evoke reliable on customers notes or Other tax pa yments accounts Dividends and interest certain from stakes pay on bank debt or bonds outstanding and investments and included in find out net included in determining net income income Investing Activities Cash authorized from sale of capital assets Payments for purchase of capital assets Cash from sale of debt or equity investments Cash flows capitalized as intangible asset assets, such as development costs start-up costs capitalized interest geographic expedition Costs Collection of principal on loans to others Purchase of debt or equity securities of others Interest and dividends received on investments Loans extended to others and not included in determining net income Financing Activities Net proceed of issuing debt or equity securities Payment of principal on bonds or bank loans Cash proceeds received from bank loans Purchase of the entitys own shares Interest paid on bank debt or bonds outstanding and not included in determining net income Dividends paid to sharehol ders Variations in Reporting activities for Cash flows A. Operating or Financing activities Transactions with different categories included in cash flows are categorize in a different manner. According to IAS 7, Para 12, A single transaction may include cash flows that are classified differently.For example, when the cash repayment of a loan includes both interest and capital the interest element may be classified as operating activities and the capital amount is classified as financing activities. B. Operating or investing and financing activities Some cash flows may be classified as arising from any activities such as interest, dividend income tax. The expatiate provisions of these types are as follows. 216 ASA University Review, Vol. 6 No. 2, JulyDecember, 2012 Interest a. For a financial institution, interest paid and interest received are usually classified as operating cash flows (para 33). b. For other enterprise, interest paid and interest received may be classified as ope rating cash flows because they enter into the decision of net profit or loss.Alternatively, interest paid may be classified as financing cash flows, because they are costs of obtaining financial resources. Interest received may be classified as investing cash flows, because they are returns on investments (para 33). Dividend a. For a financial institution, dividends received are usually classified as operating cash flow (Para 33). b. For other enterprise, dividends received may be classified as operating cash flows because they enter into the determination of net profit or loss. Alternatively dividend received may be classified as investing cash flows, because they are returns on investments (para 33). c. Dividend paid may be classified as financing cash flows, because they are costs of obtaining financial resources.Alternatively dividend paid may be classified as component of cash flows from operating activities in order to assist users to mark the ability of an enterprise to pay dividend out of operating cash flows (para 34). Income tax a. Taxes on income arise on a transaction that gives to the cash flows that are classified as operating, investing, and financing activities in cash flow statement. date tax expense may be readily identifiable with investing or financing activities, the related tax cash flows are often impracticable to constitute and may arise in a different period from the cash flows of the underlying transactions. Therefore taxes paid are usually classified as cash flows from operating activities.However, often it is practicable to identify the tax cash flow within individual transaction that gives rise to cash flows that are classified as investing or financing activity as appropriate. When tax cash flows are allocated over more than one class of activity, the total amount of taxes paid is disclosed (Para 36). In the light of SFAS 95, Transaction that enter into the determination of net income are delimitate as operating activities and hence, interest received or paid, dividend received and taxes on income are rigidly treated to arise from operating activities. Dividend to stakeholders are treated as cash outflows classified as financing activities (Keiso and Weygandt, 1998 1275-76) Cash flow statement Practices in BangladeshRegulatory Framework, in the eyes of the Companies Act 1994 (Act no. 18 of 1994) According to Section 183 of the Companies Act 1994 (which came into effect from 1 January 1995), a company is required to present balance sheet, profit and loss account (income and wasting disease account, in case of non profit companies). Under section 185, the balance sheet and the income statement have to be prepared according to the forms set out in Part 1 and Part 2 of Schedule XI respectively under which information on consecutive two historic period (concerned year and Cash Flow Statement Disclosures in Pharmaceutical Companies 217 previous year) are to be provided.However according to note (g) of the g eneral instruction for preparation of balance sheet (given in part 1 of schedule XI after the horizontal format of the balance sheet), a statement of change in financial position shall be included as an integral part of the financial statements, and shall be presented for each period for which the profit and loss account is prepared. However no specific format of cash flow statement has been prescribed in Companies Act 1994. In the light of the Security and Exchange Rule 1987 (S. R. O No. 237-l/87 go out on 28 September 1987) Under the provision of rule 12 (1) of the Securities and Exchanges Rules (SER) 1987(amended by the section notification No.SEC/ Section 7/SER/03/132 dated 22 october1997 published in the official gazette on 29 December 1997), the annual report to be furnished by an issuer of listed security shall include a balance sheet, profit and loss account, cash flow statement and notes to the accounts collectively hereinafter referred to as the financial statement. In th e part III of the Schedule of the SER 1987, issues relating to interest paid on short-term borrowing, interest and dividend received income taxes are clearly guidelined. For example, interest paid on short-term borrowing shall be a cash outflow under operating activities interest and dividend received shall be a cash inflow under investing activities. And interest paid on long term borrowing and dividend paid shall be a cash outflow under financing activities.Under paragraph 35-36, taxes on income should be treated as operating cash outflow unless they can be identified in financing and investing activities. Findings of the study To know the extent of cash flows statement reporting practices by Pharmaceutical companies, a survey has been conducted covering twelve annual reports (2009) (For detailed the name of the companies see Appendix-1). The major findings of the study are given infra in terms of general variations in reporting and voluntary disclosure. cosmopolitan findings It includes the current format and structure of cash flow statement and the extent of compliance of IAS-7, followed by sample Pharmaceutical Companies in Bangladesh. All the sample companies prepare cash flow statement as required by IAS-7/BAS 7 adopted by the Institute of Chartered Accountant of Bangladesh and present it as an integral part of the financial statements. Notes to cash flow statement have been presented as part of the financial statements in case of all the sample companies. The sample companies prepare cash flow statement in vertical form and shows figure of cash flows of the current year and the previous year. All the sample companies cash flow statement contains a classification of operational, investing, and financing activities. The sample companies did not illustrate the form _or_ system of government dopted in determining the formulation of cash and cash equivalents although this is required by paragraph 36 of IAS 7. 218 ASA University Review, Vol. 6 No. 2, J ulyDecember, 2012 Variation in Reporting Another objective of the survey was to determine which alternatives, permitted by IAS-7, are used most in practice by Bangladeshi pharmaceutical companies. It is found that there are not many differences between companies in their reporting of cash flow information. This is expected because the preparation of cash flow statement does not allow for many choices, differences of interpretation or different accounting treatments. The results are set out in table 1. plug-in-1 Variations in reporting Cash flow statement (CFS) Factors 1 Notes to CFS Options Separately, following the CFS Part of the notes to the financial statements Incorporated in the CFS resume Direct method Indirect method Total Operating activities or no interest Financing Investing activities Total Financing activities or no dividends Operating activities Investing activities Total Part of accounting policy note Nothing disclosed Total Operating activities or no tax Financing a ctivities Investing activities Total Number of companies 0 12 0 12 12 0 12 12 0 0 12 12 0 0 12 12 0 12 12 0 0 12 2 Operating activities 3 Interest received and Interest paid 4 Dividend received and Dividend paid 5 Definition of cash and cash equivalents 6 Income tax Notes to table 1 quote to point 2 of Table 1.According to IAS-7 and SEC Rule 1987, the enterprises are encouraged to report cash flows from operating activities using the direct method. The direct method provides information which may be useful in estimating future cash flows which is not available under the indirect method. All the sample companies followed the direct method in reporting operating cash flows. One company (Pharmaceutical Mithun Knitting & Dyeing Ltd. ) discloses cash flows from operating activities under indirect method in notes of financial statements as extra information. Cash Flow Statement Disclosures in Pharmaceutical Companies 219 Refer to points 3 & 4 of Table 1.All the companies studied have shown interest received and paid under operating activities and interest paid on long term borrowing and dividend paid under financing activities. Refer to points 5 & 6 of Table 1. All the companies studied have shown definition of cash and cash equivalents in the notes of accounting policy and income tax under operating activities. Voluntary disclosure The survey also included an examination of any additional information that is disclosed regarding the companys cash flow which is not required by IAS-7, but which may be face-saving to the user. For example, separate disclosure of cash flows increases operating capacity and cash flows that concord operating capacity, disclosure of segmental cash flows, cash flow per share etc.The survey found no company to disclose such additional voluntary information in its cash flow statement. Conclusion and passport A materially misstated cash flow statement, whether it is in terms of unreasonable classification in the categories or numerical accuracy, can be lead astray to the user and can lead to wrong decisions taken by the users of the statement. The survey has revealed that although sample companies prepare cash flow statement according to International Accounting Standard-7 (BAS-7), there is also a degree of non-compliance. It is, however, found that there are not many differences between companies in their reporting of cash flow information.This is expected because the preparation of cash flow statement does not allow for many choices, differences of interpretation or different accounting treatments. To make cash flow statement more informative and useful for users, the companies should disclose additional voluntary information such as cash flow per share in their cash flow statements. Items consisting of cash flows from operating, investing and financing activities should also be clarified in the notes of the financial statements. Due to the limited scope of the present study, a large number of research issues have not been attempted but are identified in the course of the study.Disclosure practices of additional items other than operating, investing and financing activities, disclosure practices differences between listed and unlisted companies, disclosure practices differences between financial and other institutions are some such potential issues for future research. 220 ASA University Review, Vol. 6 No. 2, JulyDecember, 2012 References Annual Reports of Sample Pharmaceutical Companies Listed in Dhaka Stock Exchange and Chittagong Stock Exchange 2009. Aziz Uddin, A. B. M and Bala. , S. K. ( 2001), Cash Flow Reporting in Bangladesh, The Cost & Management, Nov- Dec. ICMAB, p. 13. FASB Discussion history (1980), Reporting Funds Flow, Liquidity and Financial Flexibility, FASB, Stanford. Thomas H. Beechy. Joan E. D. Conrod, Intermediate Accounting, split second Edition, Chpter 5, Exhibit 5-1 pp. 91 Ghosh, Santi N. (2001),Workshop Material on IAS 7 Cash Flow Statements compiled under the Institute of Chartered Accountants of Bangladesh (ICAB)Project, Development of Accounting and Auditing Standards in Bangladesh, The World Bank. Government of Bangladesh (GOB) (1994), The Companies Act 1994 (Act No. 18 of 1994). Gup, B. E. & Samson, W. D. 1993. An analysis of patterns from the statement of cash flows. Financial Practice & Education, 3(2)73-79. Hendrickson, Eldom. S(1982), Accounting Theory, Richard D. Irwin, Inc. , Illinois, p. 236. Hertenstein, J. & McKinnon, S. 1997. Solving the puzzle of the cash flow statement. clientele Horizons, 40(1)69-76.International Accounting Standards Committee (IASC) (2000), International Accounting Standards 2000 International Accounting Standards Committee, London, International Accounting Standard IAS 7 (revised 1992) Cash Flow Statements in pp. 139165. International Federation of Accounting (IFAC) (1992), IFAC Handbook 1992 Technical Pronouncements (New York IFAC). IAS 7 (October 1977) Statement of Changes in Financial Position in pp. 812- 816. Khan, M. H. & Akter, M. S. & Ghosh, S. K (2005), Cash Flow Statement Disclosures A Study of Banking Companies in Bangladesh. Available at www. pcte. edu. in/site/OJMR/Finance/cashflow. pdf Keiso, Donald, E. and Jerry. J.Weygandt (1998), Intermediate Accounting, John Wiley & Sons, Inc. New York, 9th Edition, pp. 1275-76. Lee, T. A. 1982. Cash flow accounting and the allocation problem. Journal of Business Finance & Accounting, 9(3)341-352. Lee, T. A (1972), A Case for Cash Flow Reporting, Journal of Business Finance, Vol. 4, No. 2, pp. 27-36 as quoted in Studies of Accounting Theory, Steyn, B. W. & Hamman, W. D. 2003. Cash flow reporting are listed companies complying with AC 118? Meditari, 11167-180. Weygandt, Kieso, Kimmel, Accounting Principles, 9th edition, John, Wilely and Sons, Inc, pp. 732-733 Wallace, R. S. O. and Choudhury, M. S. I. And Pendelbary, M. 1997), Cash Flow Statements An International Comparison of Regulatory Positions, The International Journal of A ccounting, Vol. 32, No, 1, pp. 1-22 Cash Flow Statement Disclosures in Pharmaceutical Companies 221 Appendix-1 List of the twelve Pharmaceutical companies studied. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. GlaxcoSmithKline Bangladesh special (2009) The IBN SINA Pharmaceutical Industry Ltd. (2009) BEXIMCO PHARMACEUTICAL LTD. (2009) ORION INFUSION LTD. (2009) ACI Formulation Limited (2009) Ambee Pharmaceutical Limited (2009) Square Pharmaceutical Ltd. (2009) Libra Infusions Limited (2009) BEACOM Pharmaceuticals Limited (2009) Rahman Chemicals Limited (2009) Renata Limited (2009) Therapeutics (Bangladesh) Limited (2009)