cash flow statement

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Cash Flow Statement

A statement every publicly-traded company must file with the SEC each quarter indicating all cash inflows and cash outflows from all sources, whether they are business activities or the company's investments. This is considered one indication among many of a company's financial health. A business activity may be reported as income if a company has agreed to a contract, even if no money has actually changed hands; a cash flow statement seeks to avoid this by showing how much cash the company has on hand. It is also called an application of funds statement.
FRS 1 cash flow statementclick for a larger image
Fig. 19 FRS 1 cash flow statement.

cash flow statement

a statement which is included as part of a UK company's published annual report and accounts. The one used in the UK in 2002 is prepared in accordance with the provisions of FRS 1 (Financial Reporting Standard 1) . This shows where the finance came from and where it went out to during the period under review and helps to explain the movements in the cash and bank balances, as illustrated in Fig. 19. See also, FUNDS FLOW ANALYSIS, SOURCES AND USES OF FUNDS STATEMENTS.
References in periodicals archive ?
Sales and purchases are not netted and are reported in the statement of cash flows as investing activities.
Operating Activities: This section of the statement of cash flows reports the amount of cash generated or consumed by the operations of the business over a period of time.
In effect, the statement of cash flows forms a bridge between the two statements, bringing together all transactions that have a cash implication, whether they relate to operating, investing or financing activities, and whether they are revenue or capital in nature.
The Statement of Cash Flows, often regarded as one of the most important pages in the Annual Report, can be viewed as one of the most flawed and misleading of the financial statements.
Note that this is the total of your statement of cash flows, so you should check the addition of your statement results in this figure also.
FAS 95 requires that a statement of cash flows should classify cash receipts and payments according to whether they stem from operating, investing or financing activities.
95, Statement of Cash Flows, to extend its provisions to NPOs and to expand its description of cash flows from financing activities to include certain donor-restricted cash that must be used for long-term purposes.
The following question related to the Statement of Cash Flows was part of a recent examination for public accountants.
Quarterly disclosure includes balance sheet, income statement, and statement of cash flows but does not include a management discussion and analysis.
The Company is also assessing potential restatement of the statement of cash flows for the 2005 and 2004 quarters.
This contradiction results in a different presentation of changes in cash and financing activity on the statement of cash flows.
A relatively recent development has been the Financial Accounting Standards Board requirement to prepare a statement of cash flows.

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