New Cash Flow Reporting Rules Impact Financial Transparency and Decision-Making
The article discusses how companies must present a consolidated statement of cash flows to show all cash movements. This statement helps users understand how operating, investing, and financing activities affect a company's financial position and cash reserves. Cash flow information is gathered from various financial statements like the balance sheet and income statement. Companies can choose to report cash flows from operations using either the direct or indirect method as per IAS 7 guidelines.