Effects of adopting direct cash flow statements on companys earnings: The study on government owned and controlled corporations (GOCCs) from year 2002 to 2009
Date of Publication
Bachelor of Science in Accountancy
Ramon V. Del Rosario College of Business
Rodiel C. Ferrer
Defense Panel Member
Herminigilda E. Salendrez
Aeson Luiz C. Dela Cruz
The study aims to assess the effects of adopting the use of Direct method in presenting Statement of Cash Flows in adopting International Financial Reporting Standards (IFRS) in the Philippines with respect to the efficacy and effectiveness of the information provided. The focus of the study is mainly to determine the value relevance of net operating cash flow (OCF) on companys earnings, significance of forecasting future OCF, accuracy of forecasting, and relevance of net operating cash flow to company performance.
The study concentrates on selected Government Owned and Controlled Corporations (GOCCs) located in the National Capital Region (NCR) covering years 2002-2009 in order to provide analysis on the difference prior to the adoption of IFRS and during the adoption.
In order to address the objectives of the paper, the researchers use quantitative impact evaluation particularly using the double difference approach to assess the impact of the proposed policy. The panel data fixed-effects model estimated via Ordinary Least Squares (OLS) is applied to observe and review the relevant information of selected Philippine GOCCs from 2002 to 2009.
Based on the results of the study, the researchers conclude that adopting Direct cash flow statements provides relevant and reliable information on companys earnings and have a significant effect in forecasting future net operating cash flows.
Archives, The Learning Commons, 12F, Henry Sy Sr. Hall
ix, 140 leaves : illustrations (some colored) ; 28 cm. + ; 1 computer optical disc.
Cash flow; Cash management; Government corporations--Philippines
Allaguigan, H. T., Ng, K. D., Pulhin, A. A., & Rey, L. S. (2014). Effects of adopting direct cash flow statements on companys earnings: The study on government owned and controlled corporations (GOCCs) from year 2002 to 2009. Retrieved from https://animorepository.dlsu.edu.ph/etd_bachelors/10510