Cash Flow Statement

Definition

The Cash Flow Statement is a financial disclosure document that reflects the amount of cash that comes in (for instance, equity dividends, loan proceeds, cash collection on receivables, sales, or other revenues) and goes out (capital expenses, production expenses, selling and administrative expenses, payment of dividends, or other expenses) of an organization.

The cash flow statement reveals how much cash is needed and when that money is required by the organization within a period of time (on a backward looking basis).

The formal name under IFRS reporting is Statement of Cash Flows

The statement of cash flows provides information about the changes in cash and cash equivalents of an entity for a Reporting Period, showing separately changes from:

• Operating Activities
• Investing Activities and
• Financing Activities