Does the Formal Structure of the Cash Flow Statement have an Impact on the Understanding of the Data Contained In the Report Explaining the Company and Financial Dynamics?

Does the Formal Structure of the Cash Flow Statement have an Impact on the Understanding of the Data Contained In the Report Explaining the Company and Financial Dynamics?

Maria Silvia Avi

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Prof. Maria Silvia Avi

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Does the Formal Structure of the Cash Flow Statement have an Impact on the Understanding of the Data Contained In the Report Explaining the Company and Financial Dynamics?

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Abstract

The financial analysis of a company, implemented through ratios alone, can lead to making completely erroneous judgements about the dynamic development of the company’s income and expenditure. For this reason, cash flows and the statement that summarises them represent essential elements of the study of the company’s financial performance. Various international bodies have addressed this issue since, in most countries, the cash flow statement now identifies one of the elements that make up the financial reporting for the year, on par with the balance sheet and profit and loss. Here we will take a closer look at the central bodies that have addressed this issue and illustrate what has been said about cash flow and the cash flow statement by the American FASB, the IASB, the Italian Civil Code and the Italian Accounting Standards Board. As you will see, all of these bodies propose structures or examples of items requiring the highlighting and re-grouping of needs and sources into three aggregates: operating activities, investing activities and financing activities. Subsequently, we will point out that information limitations characterise these statements.

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How to Cite This Article

Maria Silvia Avi. 2026. \u201cDoes the Formal Structure of the Cash Flow Statement have an Impact on the Understanding of the Data Contained In the Report Explaining the Company and Financial Dynamics?\u201d. Global Journal of Management and Business Research - C: Finance GJMBR-C Volume 22 (GJMBR Volume 22 Issue C5): .

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GJMBR Volume 22 Issue C5
Pg. 21- 50

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Crossref Journal DOI 10.17406/GJMBR

Print ISSN 0975-5853

e-ISSN 2249-4588

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GJMBR-C Classification: DDC Code: 658.15224 LCC Code: HD30.28

Submission ReceivedNovember 19, 2022
Peer Review Double Blind
Handling Editor
Accepted November 26, 2022
Published December 17, 2022

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