{"id":96711,"date":"2020-12-28T17:30:35","date_gmt":"2020-12-28T12:00:35","guid":{"rendered":"https:\/\/www.vskills.in\/certification\/tutorial\/?page_id=96711"},"modified":"2024-04-12T14:25:29","modified_gmt":"2024-04-12T08:55:29","slug":"basis-for-estimates-of-future-cash-flows","status":"publish","type":"page","link":"https:\/\/www.vskills.in\/certification\/tutorial\/basis-for-estimates-of-future-cash-flows\/","title":{"rendered":"Basis for Estimates of Future Cash Flows"},"content":{"rendered":"\n<p>Cash flow projections should be based on the most recent budgets\/forecasts for a maximum of five years. Financial budgets\/forecasts over a period longer than five years may be used if management is confident that these projections are reliable and it can demonstrate its ability, based on past experience, to forecast cash flows accurately over that longer period.<\/p>\n\n\n\n<p>Cash flow projections until the end of an asset&#8217;s useful life are estimated by extrapolating the cash flow projections based on the financial budgets\/forecasts using a growth rate for subsequent years. This rate is steady or declining. This growth rate should not exceed the long-term average growth rate for the products, industries, or country or countries in which the enterprise operates, or for the market in which the asset is used, unless a higher rate can be justified.<\/p>\n\n\n\n<p>Cash flow projections should be based on reasonable and supportable assumptions that represent management&#8217;s best estimate of the set of economic conditions that will exist over the remaining useful life of the asset. Greater weight should be given to external evidence.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Cash flow projections should be based on the most recent budgets\/forecasts for a maximum of five years. Financial budgets\/forecasts over a period longer than five years may be used if management is confident that these projections are reliable and it can demonstrate its ability, based on past experience, to forecast cash flows accurately over that&#8230;<\/p>\n","protected":false},"author":1,"featured_media":0,"parent":0,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-96711","page","type-page","status-publish","hentry"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v24.5 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Basis for Estimates of Future Cash Flows - Tutorial<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.vskills.in\/certification\/tutorial\/basis-for-estimates-of-future-cash-flows\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Basis for Estimates of Future Cash Flows - Tutorial\" \/>\n<meta property=\"og:description\" content=\"Cash flow projections should be based on the most recent budgets\/forecasts for a maximum of five years. 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