Cash flow classification: report cash flows by operating, investing and financing activities to disclose liquidity and cash generating ability. The Standard requires presentation of the cash flow statement classified into operating, investing and financing activities to show historical changes in cash and cash equivalents and to assist assessment of liquidity and cash generating ability. It defines cash and cash equivalents, permits either the direct or indirect method for operating cash flows, prescribes classification examples (with special rules for financial enterprises), allows limited netting of certain cash flows, mandates disclosures on components and reconciliations of cash and cash equivalents, and requires disclosure of non cash investing and financing transactions elsewhere in the financial statements.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Cash flow classification: report cash flows by operating, investing and financing activities to disclose liquidity and cash generating ability.
The Standard requires presentation of the cash flow statement classified into operating, investing and financing activities to show historical changes in cash and cash equivalents and to assist assessment of liquidity and cash generating ability. It defines cash and cash equivalents, permits either the direct or indirect method for operating cash flows, prescribes classification examples (with special rules for financial enterprises), allows limited netting of certain cash flows, mandates disclosures on components and reconciliations of cash and cash equivalents, and requires disclosure of non cash investing and financing transactions elsewhere in the financial statements.
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