cash flow statement

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A statement showing the inflows and outflows of cash and cash equivalents for a business over a financial period. The inflows and outflows are classified under the headings of operating activities, dividends from joint ventures and associated returns on investments, and servicing of finance, taxation, capital expenditure, and financial investment, acquisitions and disposals, equity dividends paid, management of liquid resources, and financing. In the UK, Financial Reporting Standard 1 requires certain companies to publish a cash-flow statement in their annual report and accounts. The corresponding International Accounting Standard is IAS 7, Cash-Flow Statements. In the USA the term statement of changes in financial position is generally preferred.

Subjects: Economics — Accounting.

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