17.1: The Statement of Cash Flows

17.1: The Statement of Cash Flows Purposes of the statement of cash flows The main purpose of the statement of cash flows is to report on the cash receipts and cash disbursements of an entity

Cash Flow Statement

Since our Explanation of Cash Flow Statement illustrates how the amounts are determined, you will get a better understanding of this very important financial statement. No longer will you look at only the income statement and balance sheet.

Disclosure Only Required if Pricing on Risk

Over the years, I have seen quite a bit of confusion relating to requirements under the Fair Credit Reporting Act (FCRA) when it comes to risk-based pricing. One misunderstanding I have seen several times is that some believe a “credit score disclosure” is required for non-real estate applications, even if a financial institution does not set rates based on the risk (credit score) of the customer. As I will explain below, this is not a correct understanding.

Latest updates on Title II JOBS Act, Rule 506(c), Regulation D, General Solicitation & Accredited Investor Verifications

Managing conflicts of interest in private equity deals is essential for fund managers. As private equity has risen in popularity, it has come under closer scrutiny from the Securities and Exchange Commission (SEC). Conflicts of interest are a regulatory focus for the SEC for private equity deals. This is especially true when it comes to fees and undisclosed conflicts. Therefore, it is of paramount importance that private equity fund managers take steps to identify potential conflicts of interest between themselves, the fund, and their accredited investors and that they put policies and procedures in place to mitigate, eliminate, or disclose real conflicts of interest as they may arise. In this article, we will look at some common conflicts of interest that arise in private equity deals, the legal standards private equity fund managers must comply with, and how managers can identify and manage conflicts of interest.

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