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 ?
Another company stated in its SEC filling: Management determined that the Company's consolidated statements of cash flows for each of the three years in the period ended December 31, 2004 should be restated to reclassify $16,740,000; $6,666,000; and $65,197,000, respectively, from net cash used in investing activities to net cash provided by operating activities as they relate to distributions of income received from investments in partially-owned entities accounted for on the equity method.
The SEC released guidance to help registered companies improve the presentation of consolidated statements of cash flows in financial statements they file with the commission (www.
Philadelphia Electric Company and Pitney-Bowes used this procedure on their statements of cash flows.
The guide contains 75 questions and answers and 11 example statements of cash flows.
104, the board concluded that for banks, savings institutions and credit unions, the cost of providing information about certain gross cash receipts and payments generally exceeded the benefits to users of their statements of cash flows.