Shareholder fund

[anhoang88]

Hi
I hope someone can help me please.
I just joined this company for 3 weeks and after presented the Board with the cash forecast/ projection which showed negative cash flow due to some new gained contracts. One of the big boss asked for the movement of the reserve and I looked at him blankly as I didn't understand what he means.
Does anyone know what it means?
I guessed what he means is the actual movement in profit/loss hence the contributions to the shareholders. Do you think I'm right?
Any idea would be very much helpful and welcome.

Many thanks in advance.

 

[Scalloway]

If you google "movement in reserves plc" you should come up a few examples like this

http://ar2013.itvplc.com/financial-...nciliation-of-movements-in-shareholders-funds

 

[anhoang88]

Thank you, Scalloway. I'll have a look.

 

[HBR_Business_Consultants]

Hi
The movement in reserves would generally mean the profit/loss for that period. I would imagine the negative cashflow probably prompted the question/their slight concern. However there are other reserves that might make up the shareholders funds. Obviously I don't know your situation but you may also have capital reserves etc.

Well done for presenting the figures in your third week. From experience, some of the "big bosses" don't really have a full understanding of what figures are being presented to them so sometimes you have to spell it out to them. But remember, you are the figure person/accountant so present with confidence.

I hope this helps somewhat, but feel free to get in touch if you have other questions or concerns.

Thanks

Richard

Director
HBR Business Consultants Limited
"Powering Business Potential"

 

[anhoang88]

Hi Richard

Thank you for your response.

I think you hit the nail in the head there. I was thinking of the BS reserves when he asked the question so kind of being thrown off the scale.
My next project is to delivering the consolidated budget so I guess this will answer his queries.
I guess I wasn't very confident in that meeting as I knew my figures but didn't know what kind of audiences and therefore very nervous. I know now so hope i will be better next time.

Much appreciate your help!
Anh