Bibliography Regarding Statement of Cash Flow in Finance Essay

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Literature review
Jaan Alver, 2005, Preparation and Analysis of Cash Flow Statements: The Net Profit Approach and Operating Profit Approach
According to this paper the author states that a cash flow statement is vital as a component of a complete set of financial statement prepared in congruity with IFRS and also US GAAP for all business undertakings. IAS 7 sets out a formal structure for the cash flow statement. Cash flows must be categorized under the three significant headings that is, operating activities, investing and financing activities. The classification of cash flows is pivotal to the dissection of cash flow information. The Net cash flow has next to no information by itself; it is the characterization and distinct parts that are enlightening. Despite the fact that the classification of cash flows streams into the three principle sections is fundamental, it ought to be specified that guidelines are subjective. IAS 7 has not shown how to characterize certain things that may fit legitimately in more than one of the significant classifications of the statement of cash flows.
For Example the Interest and profits appropriated could be exhibited as a operating action, despite their close association with other activities presented as investing activities and also Interest and dividends paid can be presented as an operating activity, despite their close association with other activities presented as financing activities. Additional issues emerge from case that there is…

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