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05 / CAPITAL MECHANISM · V2.0Ledgers, Budgets and Tests · Turn the Cycle into a Reviewable MechanismUnify operating, investing and financing cash definitions; test each distribution against actual rights, payment dates and performance obligations.V2.0 Internal Mechanism Design Draft · Additions are proposals; entities, contracts, parameters and applicability remain to be confirmed. Original: Capital.pdf.05Five linked ledgers / Use one transaction ID across each business event; do not add balances directly across categoriesCash ledgerEntity, currency, source and useReceived/paid, restricted/availableBank and settlement recordsCustomer contract ledgerOrders, performance obligations, delivery and refundsReceivables/payables and relevant payerRevenue recognition basisConsumption-right ledgerIssuance basis, scope, term and face valueAcquisition, use, refunds and redemptionUnfulfilled obligations and cost estimatesProject asset ledgerOwnership, investment cost and statusProject recovery, maintenance and lossesSeparate valuation from recoverable cashEquity/investment-unit ledgerIssuer, holders and unitsContribution, valuation, dilution and transferDividends, redemption and remaining obligationsPresent three cash categories separately / Explain financing inflows, operating receipts and project recoveries separatelyOperating cashReceipts and related payments for real goods/servicesAssess revenue recognition and cash receipt timing separatelyInvesting cashAsset/project investment, disposal and recoveryAsset appreciation does not automatically generate cashFinancing cashCapital increases, borrowings and related outlaysRecord principal, interest, rights and use separatelyRolling cash budget (illustrative) / Confirm statutory and contractual priorities and fund restrictions against actual arrangementsUsable cashExclude restricted funds and amounts not belonging to the entityMatch payment arrangementsFulfillment, refunds, taxes, costs and maturing obligationsRetain necessary operating and earmarked fundsMaturity matching, reserves and budget reviewAssess remaining availabilityContractual/statutory distribution conditions still applyThen decide to expand, distribute or retainKey metrics and trigger actions / Include thresholds, data owners and review cycles in the project parameter sheetReal demand and unit contributionReal external customers, repeat purchase and per-order cash contributionFinancing or circular transactions cannot replace external salesMaturity payment coverageUse-matched available cash ÷ Payables due in the same periodShortfall → Identify responsible entity and funding responseFulfillment and refundsOutstanding rights, expected fulfillment cost and refund rateRising costs/refunds → Review pricing, reserves and ordersProjects and tradingProject losses, concentration, executed/unexecuted tradesDelayed recovery or restricted exits → Adjust investment and termsTesting the original 40% scenarioIf annual cash return is merely modeled at 40% per 100 of principal, required return cash is 40; principal repayment, if required, is a separate outlay.This is not a verified return, default commitment or distributable profit. Test against actual project cash, terms, losses and distribution conditions.Stress scenarios and stop conditionsNew financing stops, sales fall, receipts are delayed, refunds/maturities increase together, or IPO is delayed.Recalculate cash and fulfillment gaps separately; if coverage fails, do not expand commitments beyond budget, and handle existing obligations under the contract.Minimum missing evidence: entity and ownership relationships, product/supplier quotes, customer/investment contracts, rights issuance and liability details, historical operating cash and refunds,project budgets/recoveries, financing uses and maturities, valuation basis, transfer/redemption/buyback terms, distribution policy and applicable jurisdictions.References for definitions: IAS 7 (three cash-flow categories), IFRS 15 (performance and revenue), and SEC guidance on private secondary markets (U.S. example only). See direct links in the accompanying explanation.yutengfei.com · Andrew David W.Y.
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