Cash flow statement: Difference between revisions
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1. ''Financial reporting - external''. | 1. ''Financial reporting - external''. | ||
The cash flow statement is one of the five primary published financial statements of larger reporting entities. | |||
It shows the increase or decrease in cash (and cash equivalents) for the reporting period. | |||
This is the same as the change - increase or decrease - in the cash and cash equivalents balances reported in the balance sheet. | |||
The total cash inflow - or outflow - for the period is generally shown separately for: | |||
* Operating activities | |||
* Investing activities | |||
* Financing activities | |||
The cash flow statement can be presented using the direct method or the indirect method. | |||
The direct method sets out the gross cash flows explicitly. | |||
2. | The indirect method incorporates the profit or loss for the period - from the income statement - and relevant reconciling items to explain the differences between the cash flows and the income statement. | ||
Relevant accounting standards include Section 7 of FRS 102 and International Accounting Standard (IAS) 7. | |||
2. ''Accounting - internal.'' | |||
An internal report giving similar information, but formatted according to internal management requirements. | An internal report giving similar information, but formatted according to internal management requirements. | ||
It is good practice to ensure that any internal reports can be reconciled easily to the externally published information. | |||
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== See also == | == See also == | ||
* [[Accounting]] | |||
* [[Balance]] | |||
* [[Balance sheet]] | * [[Balance sheet]] | ||
* [[Bookkeeping]] | * [[Bookkeeping]] | ||
* [[Cash]] | * [[Cash]] | ||
* [[Cash and cash equivalents]] | * [[Cash and cash equivalents]] | ||
* [[Cash | *[[Cash balance]] | ||
*[[Cash flow]] | |||
* [[Cash management]] | * [[Cash management]] | ||
* [[Direct method]] | * [[Direct method]] | ||
* [[Financial reporting]] | |||
* [[FRS 102]] | * [[FRS 102]] | ||
* [[IAS 7]] | |||
* [[Income statement]] | * [[Income statement]] | ||
* [[Indirect method]] | * [[Indirect method]] | ||
* [[Primary statements]] | * [[Primary statements]] | ||
* [[Profit and Loss account]] | * [[Profit and Loss account]] | ||
* [[Statement of | * [[Reporting entity]] | ||
* [[Statement of changes in equity]] | |||
* [[Statement of comprehensive income]] | |||
[[Category:Cash_management]] | [[Category:Cash_management]] | ||
Latest revision as of 22:50, 18 July 2022
1. Financial reporting - external.
The cash flow statement is one of the five primary published financial statements of larger reporting entities.
It shows the increase or decrease in cash (and cash equivalents) for the reporting period.
This is the same as the change - increase or decrease - in the cash and cash equivalents balances reported in the balance sheet.
The total cash inflow - or outflow - for the period is generally shown separately for:
- Operating activities
- Investing activities
- Financing activities
The cash flow statement can be presented using the direct method or the indirect method.
The direct method sets out the gross cash flows explicitly.
The indirect method incorporates the profit or loss for the period - from the income statement - and relevant reconciling items to explain the differences between the cash flows and the income statement.
Relevant accounting standards include Section 7 of FRS 102 and International Accounting Standard (IAS) 7.
2. Accounting - internal.
An internal report giving similar information, but formatted according to internal management requirements.
It is good practice to ensure that any internal reports can be reconciled easily to the externally published information.
Also written cashflow statement.
Also known as a statement of cash flows.
See also
- Accounting
- Balance
- Balance sheet
- Bookkeeping
- Cash
- Cash and cash equivalents
- Cash balance
- Cash flow
- Cash management
- Direct method
- Financial reporting
- FRS 102
- IAS 7
- Income statement
- Indirect method
- Primary statements
- Profit and Loss account
- Reporting entity
- Statement of changes in equity
- Statement of comprehensive income
