Cash flow statement for the period. Cash flow statement: how to fill it out

In 2011, by Order of the Ministry of Finance dated 02/02/2011. No. 11n was approved. Its introduction was due to an attempt to bring the standards of Russian accounting To international standards financial statements (IFRS).

In accordance with paragraph 6 of PBU 21/2008, the accounting policy of the organization must ensure rational accounting, based on business conditions and the size of the organization (the requirement of rationality).

Traffic report metrics cash organizations are reflected in rublesRF.

The amount of cash flows in foreign currency is recalculated into rubles at the official exchange rate of this foreign currency to the ruble, established by the Central Bank of the Russian Federation on the date of payment or receipt

Please note:The difference arising from recalculation cash flows of the organization and cash balances and cash equivalents in foreign currency at exchange rates different dates, reflected in the cash flow statement separately from the current, investment and financial cash flows of the organization as the impact of changes in the foreign currency exchange rate against the ruble.

2. Cash flow statement indicators for the previous period.

Report indicators for last year transferred from the 2010 cash flow statement, with adjustments for comparability purposes.

4. Methodology for converting cash flows in foreign currency into rubles.

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The cash flow statement reflects all receipts and payments of the organization, as well as fund balances at the beginning and end of the reporting period (clause 6 of PBU 23/2011). The standard form of such a report was approved by Order of the Ministry of Finance of Russia dated July 2, 2010 No. 66n. It must be filled out only at the end of the year and submitted as part of the annual financial statements.

Who is obliged to draw up

All organizations that maintain accounting must prepare a cash flow statement. There are exceptions to this rule.

Organizations that have the right to use simplified forms of accounting and reporting may not submit such a report. For example this small businesses (Parts 4-5 of Article 6 of the Law of December 6, 2011 No. 402-FZ, clause 6 of the Order of the Ministry of Finance of Russia of July 2, 2010 No. 66n).

The cash flow statement provides data on three types of activities: current, investing and financing. Of course, if there is something to reflect. For each type of activity, the report has its own section:

“Cash flows from current operations”;

“Cash flows from investment operations”;

"Cash flows from financial transactions."

Cash flows are nothing more than payments to an organization and receipts of funds, as well as cash equivalents (Clause 6 PBU 23/2011).

However, those payments and receipts that do not affect the total amount of cash and cash equivalents do not need to be included in the report. Even if they change the composition of such indicators. In particular, the following does not need to be reflected in the report:

payments related to the investment of funds in cash equivalents;

cash receipts from the repayment of cash equivalents (except for accrued interest);

foreign exchange transactions (excluding losses or gains from the transaction);

exchange of some cash equivalents for other cash equivalents (excluding losses or gains from the transaction);

other similar payments and receipts (for example, receiving cash from a bank account, depositing cash at a bank, transferring from one organization account to another, crediting funds to letters of credit).

This follows from paragraph 6 of PBU 23/2011.

For each group of cash flows, determine how much cash was received and how much was decreased, as well as the result of such receipts and expenditures during the reporting period. If it is not possible to clearly classify a cash flow, classify it as a group of cash flows from current operations. This is established by paragraphs 12 and 13 of PBU 23/2011.

Determine the cash balances at the beginning and end of the reporting period (i.e., year) for the organization as a whole, taking into account branches and representative offices. Reflect the indicators of the reporting year in comparison with similar data for the previous year.

Filling procedure

The rules for filling out a cash flow statement are prescribed in PBU 23/2011, approved by order of the Ministry of Finance of Russia dated February 2, 2011 No. 11n. But you must adhere to them only if you are preparing the form for submission to the tax office as part of the annual financial statements.

In other cases (in particular, when you fill out a report for the founders, Rosstat or for a bank), it is not necessary to strictly follow the rules of PBU 23/2011. It is enough to comply general requirements to the formation of financial statements, which are prescribed in PBU 4/99.

Numbering (codes) of lines

The standard form of a cash flow statement does not provide for line numbering. You can enter the codes yourself by taking them from Appendix 4 to Order No. 66n of the Ministry of Finance of Russia dated July 2, 2010. This must be done when the organization submits reports to the statistics department and other regulatory agencies. For example, the line “Receipts - total” of the “Cash flows from current operations” section corresponds to code 4110.

If you prepare reports only for shareholders or for other users who are not representatives of state control, then the lines of the cash flow statement do not need to be numbered. This follows from paragraph 5 of the order of the Ministry of Finance of Russia dated July 2, 2010 No. 66n.

Negative indicators

Report indicators that have negative value, reflect in parentheses without the minus sign. Do the same if the indicator needs to be subtracted when calculating the totals. This is stated in Note 7 to the Balance Sheet, approved by Order of the Ministry of Finance of Russia dated July 2, 2010 No. 66n.

Currency

Fill out the report in thousands or millions of rubles, without decimal places. If the organization conducts cash settlements in foreign currency, then according general rule such amounts of payments or receipts must be converted into ruble equivalent. To do this, convert foreign currency into rubles at the official exchange rate on the date of payment. When an organization has a lot of similar transactions in foreign currency, and the official exchange rate of this currency has changed slightly, the average rate for the month (or for more) can be used for recalculation short period). Such rules are specified in paragraph 6 of PBU 3/2006.

For example, in November 2015, due to a large number of transactions for the purchase of homogeneous materials, the organization recalculated funds at the average US dollar exchange rate. The US dollar exchange rate changed slightly in November 2015. To determine the average rate, you need to add up all US dollar rates for each day from November 1 to November 30 and divide the resulting amount by 30 (the number of days).

The difference resulting from the recalculation of the organization's cash flows and cash balances in foreign currency at rates for different dates should be reflected in the report separately from current, investment and financial flows. Show this as the impact of changes in the foreign currency exchange rate against the ruble on line 4490 of the Cash Flow Statement.

If the organization immediately exchanged foreign currency for rubles, then reflect the cash flow in the report in rubles. There is no need to do an intermediate conversion of currency into rubles. Apply a similar rule in a situation where an organization purchased foreign currency for rubles shortly before making the corresponding payment.

Such rules are established by paragraphs 18, 19 of PBU 23/2011.

Collapsed indicators

In some cases, cash flows need to be shown on a net basis in the report. In particular, when they characterize not so much the activities of the organization itself, but the activities of its counterparties, and (or) when receipts from some are associated with payments to others. For example, collapsed reflect:

cash flows of a commission agent or agent associated with the provision of commission or agency services (except for fees for the services themselves);

indirect taxes (VAT and excise taxes) as part of receipts from buyers and customers, payments to suppliers and contractors and payments to the Russian budget or reimbursement from it;

receipts from the counterparty for reimbursement of utility bills and these payments themselves in rental and other similar relationships;

payment for transportation of goods with receipt of equal compensation from the counterparty.

This is stated in paragraph 16 of PBU 23/2011.

In particular, when reflecting VAT in a collapsed manner in the cash flow statement, indicate the difference between the tax amounts received from partners as part of revenues (as well as from the budget) and the tax amounts transferred to counterparties as part of payments (as well as to the budget).

Thus, VAT amounts can be reflected in the cash flow statement along the lines:

4119 “Other receipts”, if in the reporting year the amount of VAT transferred to suppliers, contractors and the budget is less than what was received from buyers, customers and the budget;

4129 “Other payments”, if in the reporting year the amount of VAT transferred to suppliers, contractors and the budget exceeds what was received from buyers, customers and the budget.

When determining the indicators of these lines, also take into account the amounts of VAT paid (received) in connection with investment and financial transactions (subparagraph “b”, paragraph 16, paragraph 12 of PBU 23/2011).

Similar conclusions follow from the letter of the Ministry of Finance of Russia dated January 27, 2012 No. 07-02-18/01.

How to create indicators

To fill out the report, take data on debit and credit turnover for accounts 50 “Cash”, 51 “Current account”, 52 “Currency accounts”, 55 “Special bank accounts”, 57 “Transfers in transit”. For more information on how cash flow statement indicators are generated, see table.

An example of how to determine the result of cash flow from current activities

In 2015, the amount of revenue (including advances) received to the current account and cash desk of Alpha LLC amounted to 11,800,000 rubles. (including VAT - RUB 1,800,000). During the same period, the organization transferred from the current account payment for goods (work, services) supplied in the amount of RUB 5,900,000. (including VAT - 900,000 rubles).

Salaries actually paid to employees in 2015 amounted to RUB 2,000,000.

The amount of funds allocated for other expenses is 100,000 rubles. The budget includes income tax - 500,000 rubles, VAT - 700,000 rubles, insurance premiums to extra-budgetary funds - 680,000 rubles.

Thus, the difference between the VAT amounts received from partners as part of revenues (as well as from the budget) and the tax amounts transferred to counterparties as part of payments (as well as to the budget) amounted to 200,000 rubles. (RUB 1,800,000 - RUB 900,000 - RUB 700,000). This amount is indicated in the line “Other income”.

On the line “Other payments” the accountant indicated the amount of 780,000 rubles, which adds up:

from funds allocated for other expenses (RUB 100,000);
from insurance contributions to extra-budgetary funds (RUB 680,000).

The cash flow report for 2015 in terms of the formation of the section “Cash flows from current operations” was compiled by the Alpha accountant as follows (thousand rubles).

Title of report articles	Line codes	For 2015
Receipts - total
including: from the sale of products, goods, works and services
from rent payments, license fees, royalties, commissions and other similar payments
from resale of financial investments
other income
Payments - total
including: to suppliers (contractors) for raw materials, materials, works, services
in connection with the remuneration of employees
interest on debt obligations
corporate income tax
other payments
Balance of cash flows from current operations

An example of how to determine the result of cash flow from investing activities

In 2015, Alpha LLC paid for the purchased premises worth RUB 5,000,000. In the same year, Alpha provided another organization with a cash loan in the amount of 400,000 rubles.

Alpha LLC had no income from investment activities.

In the section “Cash flows from investment operations” of the cash flow report for 2015, the Alpha accountant indicated (thousand rubles):

on line 4221 “Including in connection with the acquisition, creation, modernization, reconstruction and preparation for use of non-current assets” - (5000);

on line 4223 “In connection with the acquisition of debt securities(rights to claim funds from other persons), provision of loans to other persons” - (400);

on line 4220 “Payments - total” - (5400);

on line 4200 “Balance of cash flows from investment operations” - (5400).

An example of how to determine the result of cash flow from financial activities

In 2015, Alpha LLC repaid a previously received interest-free cash loan in the amount of RUB 500,000.

Alpha LLC had no income from financial activities.

In the section “Cash flows from financial operations” of the cash flow report for 2015, the Alpha accountant indicated (thousand rubles):

on line 4323 “In connection with the repayment (redemption) of bills and other securities, repayment of loans and borrowings” - (500);

on line 4320 “Payments - total” - (500);

on line 4300 “Balance of cash flows from financial transactions” - (500).

Situation: Is it necessary to include the balance of account 57 “Transfers in transit” in the amount of the indicator “Balance of cash and cash equivalents at the beginning (end) of the reporting period” of the cash flow statement??

Yes, you need it.

In general, account 57 “Transfers in transit” takes into account funds transferred (transferred) for crediting to the organization’s current account, but not yet credited for their intended purpose. And these are those assets (money) that are essentially already the property of the organization. The balance of account 57 at the beginning and end of the reporting year is reflected in the Balance Sheet on line 1250 “Cash”. In this case, the cash balances reflected in the report should correspond indicators Balance Sheet. Thus, include the balance on account 57 in the report in the amount of cash balances at the beginning and end of the reporting year.

Relationship between indicators and Balance

Cash flows from current operations

On lines 4110-4100, reflect cash flows from current operations. They are usually associated with the formation of profit (loss) from sales (clause 9 of PBU 23/2011).

Including line 4110, indicate the total amount of cash receipts from current operations. It can be determined by adding up the indicators of lines 4111-4119.

On line 4111, provide the amount of revenue from the sale of products and the amount of advances from customers minus VAT and excise taxes.

On line 4119 reflect other receipts, for example:

amounts returned to the cash desk by accountable persons;

amounts received from the perpetrators or from the insurer as compensation for damage;

received fines, penalties, penalties for violations of contract terms.

On line 4120, indicate the total amount of payments for current transactions. It includes payment of raw materials to suppliers, interest on debt obligations, wages of employees, income tax paid and other payments. Line 4120 can be determined by adding up the indicators of lines 4121-4129. Please indicate all payments in parentheses.

On line 4100, reflect the balance of cash flows from current operations. It can be determined by subtracting the indicators of line 4120 from the indicators of line 4110.

Cash flows from investment operations

On line 4210, reflect the amount of cash and cash equivalents that came from investment transactions. It can be determined by adding up the indicators of lines 4211-4219.

On line 4211, indicate the amounts that the organization received from the sale of fixed assets, intangible assets, capital construction in progress and equipment for installation, excluding VAT.

On line 4220, reflect the total amount of payments for investment activities. Determine it by adding up the indicators of lines 4221-4229.

On line 4221, reflect the payment in the reporting year of fixed assets, intangible assets and construction in progress, excluding VAT.

On line 4200, reflect the balance of cash flows from investment operations. It can be determined by subtracting the indicators of line 4220 from the indicators of line 4210.

Cash flows from financial transactions

On line 4310, reflect the total receipts from financial transactions. They can be obtained by adding up the indicators of lines 4311-4319.

On line 4311, indicate the amount of loans and borrowings received from banks and other organizations, excluding interest.

On lines 4312 and 4313, reflect the contributions of the company's owners made in the reporting year.

On line 4320, reflect the total amount of payments for financial activities. It can be obtained by adding up the indicators of lines 4321-4329.

On line 4321 in parentheses, reflect the amount of loans and credits that were repaid by the organization in the reporting year.

On line 4322, indicate the amount of dividends that were paid to the founders.

On line 4300, reflect the balance of cash flows from financial transactions. It can be obtained by subtracting the indicators of line 4320 from the indicators of line 4310.

On line 4400, indicate the cash flow balance. You will get it by adding up the indicators of lines 4100, 4200 and 4300.

On line 4450, indicate the balance of cash and cash equivalents at the beginning of the year. The composition of this value is disclosed in the notes to the financial statements.

The composition of cash and cash equivalents at the beginning of the reporting year is disclosed by the organization in the explanations (clause 22 of PBU 23/2011).

On line 4500, indicate the balance of cash and cash equivalents at the end of the reporting period. It can be determined if we add the turnover for the year and changes in foreign currency exchange rates to the balance at the beginning of the year (line 4400 + line 4450 + line 4490).

On line 4490, reflect the difference that arose when recalculating cash flows and cash balances in foreign currency at rates for different dates (clause 19 of PBU 23/2011). If negative exchange rate differences exceed positive ones, then show the resulting difference in parentheses.

One of the main accounting documents is the cash flow statement. It records income and expense transactions, which are classified depending on the sources of financing. A sample report and the rules for its preparation are described in detail in the article.

Purpose of the report

Cash flow statements are submitted by companies and individual entrepreneurs. It contains data for 1 calendar year (from January 1 to December 31) and is transmitted to the local tax office no later than 3 months from the end of that year. Those. The report must be submitted by March 31 of the following year.

The preparation of this document is mandatory for every company. The corresponding requirements are provided for by Order of the Ministry of Finance of the Russian Federation No. 11N dated February 2, 2011.

According to the order, the traffic report is integral part accounting statements. It contains summarized data on all financial flows of the organization for 1 calendar year (this interval is the reporting period). The accountant records both the movement of money itself and transactions that involve cash equivalents (for example, bank deposits).

All these operations are classified into:

Receipts (receipts).
Payments (expenses).

In general they are called cash flows, examples of which are:

funds received from the sale of goods or services to customers and buyers;
salary payment;
transfers in favor of counterparties and other persons;
transfer of company income tax;
payment of interest;
receipt of interest in favor of the company (as a result of the formation of receivables from counterparties);
payments to suppliers for their services, goods, supplied raw materials, etc.

However, not all financial transactions are cash flows. For example, threads are not:

currency exchange transactions (except for profits or losses resulting from exchange rates);
exchange of cash equivalents (other than income or loss derived from these transactions);
payment transactions related to investing funds in cash equivalents;
all other transactions that change the composition of funds or their equivalents without changing the total amount on the balance sheet.

Thus, flows denote incoming and outgoing transactions that increase or decrease the total amount of the company's balance sheet. In this case, the operations do not change the structure of the enterprise's assets. All these streams are divided into:

current (operations of a regular nature that are associated with mandatory payments - for example, transfer of salaries, receipt of income from the sale of goods, etc.);
investment (financial transactions related to investments in equipment, scientific research, issuing loans, etc.);
financial (mainly debt transactions related to the sale of bonds or bills).

Examples of these flows are described in the table.

flow type	practical examples of operations
current	income received from the sale of goods; rental income; commission; transfers as payments to the supplier and other counterparties; salary payment, etc.
investment	payments in favor of counterparties related to the purchase of new equipment, as well as its modernization, repair, etc.; costs associated with research activities and surveys; issuance of credits/loans and their repayment; dividends from shares acquired in other companies; proceeds from the sale of securities, etc.
financial	own contributions of the company founders; payment of dividends; proceeds associated with the sale of bonds and other debt securities.

Sample document and rules for its preparation

In the cash flow statement, the company reflects all these flows both at the head office and at the branches. However, if she has subsidiaries, then financial transactions between them and the main company are reflected in a separate document. When preparing a report, the accountant must fill out a single form (OKUD system code 0710004).

It consists of 3 pages and contains the following information:

Full name of the organization.
Compilation date ( last number calendar year– December 31).
Name economic activity which the company is engaged in.
Organizational and legal form.
Information on receipts and payments in thousands or millions of rubles (information on transactions is classified into sections - for example, for lease payments, for interest on loans, proceeds from the sale of goods, etc.).
At the end of the document the balance value is indicated, i.e. differences in the movement of funds, as well as the balance of cash and cash equivalents.
The report must be signed by the immediate manager of the company - he puts his signature, a transcript of the signature (last name, initials) and date.

A completed sample cash flow statement is provided below. When filling it out, you can rely on this example. Let’s assume that the specified company “Mir” receives a loan in the amount of 400 thousand rubles. Then given value must be reflected in the column about obtaining loans (4311). Let's assume that in the same year the company borrowed 280 thousand rubles. at the bank, but returned this amount in full.

As a result, total receipts (according to column 4310) will be the sum of these values: 400 thousand + 280 thousand = 680 thousand rubles. When finding the difference (balance), it is necessary to subtract 280 thousand rubles from this amount, since these funds were returned to the bank in the same year. There will be 400 thousand rubles left. If we assume that in 2018 the Mir company would have returned only 100 thousand rubles, then it is necessary to subtract exactly this amount, and then the result will be 680 thousand - 100 thousand = 580 thousand rubles. (balance).

Cash flow statement(or statement of cash flows) summarizes the significant causes of changes in a company's cash and cash equivalents over a specified period of time. Items are presented in the following categories: operating activities, investing activities, financing activities, and additional information.

The cash flow statement contains information about cash receipts companies and her cash payments during the reporting period, showing how these cash flows relate the ending cash balance on the balance sheet to the beginning of the period. The information in the statement, which is prepared on a cash basis, contrasts with the information in the income statement, which is prepared on the accrual basis. For example, the income statement reflects income at the time the transaction occurs, rather than after cash is received; in contrast, the cash statement reflects the receipt of money at the moment when it is directly received by the enterprise (to current accounts or through the cash register).

The process of comparing reported income and cash flows funds from operating activities gives useful information about when and how the company is able to generate cash from operating activities. While income is an important indicator of a company's performance, cash flow also has important for the analyst.

To illustrate, consider a hypothetical scenario in which a company sells all of its inventory on deferred payment, but receives no money for the item. It will report impressive sales on its earnings report, but will still have zero cash flow, meaning the company will not survive. The cash flow statement also provides a means of comparing the balance sheet cash data at the beginning of the study period and the end of the period.

In addition to information about cash received (or used) in operating activities, the statement of cash flows contains information about cash received (or used) in a company's investing and financing activities. This information allows the analyst answer such questions, How:

does the company generate enough cash from its operations to pay for its new investments, or does it rely on new release debt to finance them?
Does the company pay its dividends to common stockholders using cash that it receives from operations, from the sale of assets, or from the issuance of debt securities?

The answers to these questions are very important because, in theory, you can generate cash flows from operations indefinitely, but you can only generate cash by selling assets as long as there are assets to sell. Likewise, generating cash from debt financing is only possible as long as lenders are willing to lend, and the decision to lend depends on the expectation that the company will eventually have enough cash to pay its obligations.

Thus, information about the sources and uses of cash helps creditors, investors and other users of statements assess the company's liquidity, solvency and financial flexibility.

Components and Format of a Cash Flow Statement

The analyst must be able to extract and interpret cash flow information from financial statements prepared in accordance with any acceptable format. The basic components and acceptable formats of a cash flow statement are well established:

The cash flow statement has subsections relating to specific items operational, investment and financial company activities.
Two data formats are available: direct And indirect.

Direct method – a method in which grouping occurs according to the accounts of the enterprise.

Indirect method - a method in which operating activities begin with net income, which is then adjusted to cash received from operating activities.

An example report is as follows:

Table 1 – Example of a cash flow statement

Indicator name	For January - December 2015	For January - December 2014
Cash flows from current operations Receipts - total
including: from the sale of products, goods, works and services
lease payments, license fees, royalties, commissions and other similar payments
from resale of financial investments

other income
Payments - total
including: to suppliers (contractors) for raw materials, materials, works, services
in connection with the remuneration of employees
interest on debt obligations
corporate income tax

other payments
Balance of cash flows from current operations
Cash flows from investment operations Receipts - total
including: from the sale of non-current assets (except financial investments)
from the sale of shares of other organizations (participatory interests)
from the return of loans provided, from the sale of debt securities (rights to claim funds against other persons)
dividends, interest on debt financial investments and similar income from equity participation in other organizations

other income
Payments - total
including: in connection with the acquisition, creation, modernization, reconstruction and preparation for use of non-current assets
in connection with the acquisition of shares of other organizations (participatory interests)
in connection with the acquisition of debt securities (rights to claim funds against other persons), provision of loans to other persons
interest on debt obligations included in the cost of an investment asset

other payments
Balance of cash flows from investment operations

Indicator name	For January - December 2015	For January - December 2014
Cash flows from financial transactions Receipts - total
including: obtaining credits and loans
cash deposits of owners (participants)
from issuing shares, increasing participation shares
from the issue of bonds, bills and other debt securities, etc.

other income
Payments - total
including: owners (participants) in connection with the repurchase of shares (participatory interests) of the organization from them or their withdrawal from the membership of participants
for the payment of dividends and other payments for the distribution of profits in favor of the owners (participants)
in connection with the repayment (redemption) of bills and other debt securities, repayment of loans and borrowings

other payments
Balance of cash flows from financial transactions
Balance of cash flows for the reporting period
Balance of cash and cash equivalents at the beginning of the reporting period
Balance of cash and cash equivalents at the end of the reporting period
The magnitude of the impact of changes in foreign currency exchange rates against the ruble

Classification of company funds

All companies are engaged in operating, investing and financing activities. These activities are used as structural parts of the cash flow statement in accordance with IFRS and domestic accounting standards. These elements mean the following:

Operations includes the day-to-day activities of a company that generate revenue, including things like sale of goods And provision of services. Cash inflows come from cash sales and collections of accounts receivable. Examples include cash receipts from the provision of services and license fees, commissions and other income. In order to generate income, companies take measures, such as producing goods and providing services. Cash outflow occurs as a result of cash settlements for inventories, payroll, taxes and other operating expenses associated, for example, with the repayment of accounts payable. In addition, transaction activities include cash receipts and payments related to securities held for transactions or trading purposes (as opposed to investments in securities).
Investment activities- activities related to buying and selling long-term investments. Investments include real estate, land, equipment, and other fixed assets; intangible assets; other long-term assets; long-term and short-term financial investments in equity and debt securities (bonds and loans) issued by other companies.

Investments in equity and debt securities that:

(a) are cash equivalents (very short-term, highly liquid securities)

(b) are trading securities, the purchase and sale of which are considered operating activities even for companies where this is not the main activity.

Within investing activities, cash inflows include proceeds from the sale of non-trading securities; property, land, equipment, other fixed assets; intangible assets; or other long-term assets. Cash outflows include cash payments to purchase these assets.

Financial activities includes receipt or redemption of capital, such as equity and long-term debt. The two main sources of capital are shareholder financing and creditor financing. Cash receipts in this category include cash receipts from issuing shares (common or preferred) or bonds and cash receipts from borrowing. Cash outflows include cash payments in connection with the repurchase of shares, the payment of dividends, and the repayment of bonds and other borrowed funds. Please note that indirect borrowings using accounts payable are not considered financing activities, such borrowings will be classified as operating activities.

In accordance with IFRS, there is some flexibility in reporting, for example, in terms of displaying information on interest and dividends. IFRS 7 notes that while for a financial institution interest paid and received would normally be classified as an operating activity, for other entities it may be appropriate to use alternative classifications.

For this reason, under IFRS, interest received can be classified as either an operating activity or an investing activity. Under IFRS, interest paid can be classified either as part of operating activities or as financing activities. In addition, under IFRS, dividends received can be classified as either operating activities or investing activities. On the other hand, dividends paid may be classified as an operating activity or a financing activity. Companies should use consistent classifications from year to year to allow data to be compared from year to year.

Non-cash transactions

Companies can also participate in non-cash investment and financial activities. A non-cash transaction is any transaction that does not involve the inflow or outflow of funds. For example, if a company exchanges one non-monetary asset for another non-monetary asset, then no cash is used in such a transaction. Likewise, cash is not used when a company issues common stock, such as in connection with the conversion of convertible bonds or convertible preferred stock.

Since money is not involved in such non-cash transactions (by definition), these transactions are not included in the statement of cash flows. However, any significant non-cash transactions must be disclosed, for example in the notes to the financial statements.

Statement of Cash Flows: Preparation and Relationship to Other Elements of Financial Statements

Relationship to the Balance Sheet and Income Statement

Let us recall the accounting equation that generalizes the balance sheet:

Assets = Liabilities – Equity

Cash is an asset. The cash flow statement ultimately shows the change in cash during the reporting period. The beginning and ending cash balances are shown on the company's balance sheet for the previous and current years, and at the bottom of the cash flow statement these amounts are also compared.

Table 2 - Relationship between the cash flow statement and the balance sheet

If the company has funds in foreign currency, the company will feel the consequences of the change exchange rates.

The cash flow statement shows why the change in cash occurred; in other words, it shows the company's operating, investing and financing activities (as well as the impact of foreign exchange rates). At the beginning and end, the values of the balance of cash and cash equivalents are linked through the cash flow statement (Table 2). The relationship is similar to that between net income and dividends.

Table 3 - Relationship between the cash flow statement and the balance sheet and income statement

A company reports operating activities on an accrual basis on its income statement, so any differences between accrual and cash accounting will increase or decrease some (usually) current assets or liabilities on the balance sheet.

For example, if the income reported using the accrual method is higher than the cash actually collected, then the result would be increase in accounts receivable. If the expenses that are determined on the accrual basis are lower than the actual money paid for these transactions, then the result will be a decrease in accounts payable.

Typically, a company's investment activities are associated, as a rule, with the section on non-current, that is, long-term, assets, and the company's financial transactions in the cash flow statement are associated with the section of the balance sheet on equity and long-term liabilities. Each item on the balance sheet is also linked to an income statement and a statement of cash flows. The last aspect is reflected through the change in the values at the beginning and at the end of the balance. Consider, for example, accounts receivable:

Given any three of these four elements, you can easily calculate the missing one. For example, if you know the accounts receivable at the beginning of the period, the income and cash received from customers, you can easily calculate the accounts receivable at the end of the period. Understanding these relationships between the balance sheet, income statement and cash flow statement is useful not only for understanding the financial health of a company, but also for identifying irregularities.

Steps to Prepare a Cash Flow Statement

The preparation of the statement of cash flows uses both profit and loss data and information from the balance sheet.

As noted earlier, companies often disclose only indirect information about operating cash flow, while analysts prefer information in a direct format. Understanding how to collect cash flow information will allow you to break down an indirect method report and reformat it into a more useful form.

The first step in preparing a cash flow statement is to determine the total cash flows from operating activities. The direct method of presenting cash from operating activities will be illustrated first, followed by the indirect method. Cash flows from investing activities and from financing activities are identical regardless of the method.

Operations: direct method

You must first determine how much money was received from customers, and then how much money was paid to suppliers and employees, and how much money was spent to pay other operating expenses, interest, and income taxes.

Cash received from clients

To determine cash receipts from customers, the amount of revenue must be adjusted by the net change in accounts receivable for the year. If there is an increase in accounts receivable during the year, then accrual income is higher than cash receipts from customers, and vice versa.

Cash paid to suppliers

Two pieces of information are needed to make this calculation: amount of inventory purchased And the amount paid for them. To determine purchases from suppliers, cost of goods sold must be adjusted for changes in the amount of inventory on the balance sheet. If inventories have increased during the year, then inventory purchases exceed the cost of goods sold at the end of the year, and vice versa.

An enterprise cannot always immediately pay its debt for goods, materials, and raw materials that were received. In this case, liabilities (accounts payable) will increase due to the difference between the amount paid and the cost of goods received. Conversely, a company can pay even more to its suppliers than the cost of received materials, raw materials, etc., which will lead to a decrease in the amount of accounts payable.

Therefore, once the cost of purchases has been determined, the amount of cash paid to suppliers can be calculated by adjustments the cost of purchases for the amount of accounts payable. If the company paid for all purchases in cash, then accounts payable will not change and the cash outflow will be equal to the cost of inventory formation. If accounts payable increased during the year, the cost of purchases determined on an accrual basis will be higher than the amount calculated on a cash basis, and vice versa.

Cash paid to employees

To determine the money paid to employees, it is necessary to weigh the costs of wages by the amount of the net change in wages payable paid for the year. If wages payable increased during the year, then payroll costs (calculated on an accrual basis) are higher than the amount of cash paid, and vice versa.

Cash paid for other operating expenses

To determine the cash paid for other operating expenses, the amount of other operating expenses in the income statement must be adjusted by the net change in deferred expenses and accrued liabilities for the year. If prepaid expenses increased during the year, other operating expenses on a cash basis were higher than on an accrual basis, and vice versa. If accrual expenses increased during the year, then other operating expenses on a cash basis were lower than on an accrual basis, and vice versa.

Interest payments

To determine cash paid as interest, interest expense must be adjusted in the income statement by the net change in interest payable for the year. If interest payable has increased during the year, then interest expense on an accrual basis is higher than the amount of cash paid for borrowings, and vice versa.

Cash paid as income taxes

In order to determine the cash paid for income taxes, it is necessary to adjust corporate income tax expense in the income statement by the amount of the net change in income tax receivables, deferred tax assets, income tax payables, deferred taxes per year. If the amount of accounts receivable and deferred tax assets increases during the year, then income taxes on a cash basis will be higher than on an accrual basis, and vice versa.

Likewise, if accounts payable or deferred tax obligations increase during the year, then the income tax on the cash basis will be lower than on the accrual basis, and vice versa.

Investment activity: direct method

The second and third stages of preparing a cash flow statement can be defined as determining the total amount of cash from investing activities and from financing activities. The presentation of this information is identical whether the direct or indirect method is used. Cash flow investing is always presented using the direct method.

Financial activity: direct method

As with investing activities, financing activities are always presented using the direct method.

Cash Flow Statement Analysis

The cash flow statement contains information about the amounts of cash flowing into and out of the business. Some investors compare cash from operations to net income to assess the quality of a company's earnings. Analyzing a company's cash flows can provide useful information for understanding a company's business and earnings and for forecasting future cash flows. This paragraph describes tools and techniques for analyzing the cash flow statement, including analyzing the main sources and uses of cash, generating cash flows, and calculating free cash flow and cash flow ratios.

Assessment of sources and directions of use of funds

The assessment of the cash flow statement should include an overall assessment of the sources and uses of funds in the context of the three main categories, as well as an assessment of the main factors of cash flow within each category. Necessary:

1. Calculate where the main sources and directions use of cash flows in the context of operating, investing and financial activities.

2. Assess the main determinants operational cash flow.

3. Assess the main determinants investment cash flow.

4. Assess the main determinants financial cash flow.

Step 1: The company's primary sources of cash may vary depending on from its growth stage. For mature The company's desired source of cash is from operating activities. In the long term, the company must generate cash from operating activities. If operating cash flows were negative, the company would have to borrow money or issue shares (as part of financing activities) to finance the deficit.

Eventually, debt to capital providers must be repaid from the companies' core operations or they will no longer be willing to provide capital. Cash generated from operating activities can either be used in investing or financing activities.

If a company has good business development opportunities or other investment opportunities, it is advisable to use available cash for investment activities. If a company does not have potentially profitable investment opportunities, then cash must be returned to capital providers as part of financing activities.

For new For a business or growth stage company, operating cash flow may be negative for a period of time as it is invested in inventory and accounts receivable (providing trade credit to new customers) to expand the business. This state of affairs cannot continue forever, so eventually cash must begin to flow primarily from operating activities so that capital can be returned to creditors. Finally, it is desirable that the amount of operating cash flows be sufficient to cover capital expenditures (in other words, that the company has free cash flow). Thus, the main points to consider on at this stage are:

What are the main sources of financing activities and directions for using cash flows?
Is operating cash flow positive and sufficient to cover capital expenditures?

Step 2: For the operating section, analysts should examine the most significant determinants of operating cash flow. Some companies need to raise funds to use operations(to generate accounts receivable, inventory, etc.), while other companies' business model generates cash flow (for example, when receiving cash from customers).

When using the indirect method, it is necessary to examine the increases and decreases in accounts receivable, inventory, accounts payable, and so on in order to determine whether the company is absorbing cash or generating free cash flow through operating activities.

It is also useful to compare operating cash flow to net income. Since net income includes non-cash expenses (depreciation and amortization), it is desirable for a mature company to have operating cash flow greater than net income. The ratio between net income and operating cash flow is also an indicator of earnings quality.

If a company has significant net income but poor operating cash flow, this could be a sign poor earnings quality. A company may use aggressive accounting options to increase net income, but at the same time will not generate enough cash to own business. It is also necessary to examine the variability of both earnings and cash flows and consider the impact of this variability on the company's risks, as well as the ability to predict future cash flows to assess the value of the company. As a result, you need to answer the following questions:

What are the main determinants of operating cash flow?

Is operating cash flow higher or lower than net income? Why?

How stable are operating cash flows?

Step 3: In the investing section, you need to evaluate each position. Each position represents either source or direction of use funds. This allows you to understand where cash is being spent (or where it is coming from). This section of the report will tell you how much money is being invested to improve competitiveness in property, equipment, land, etc.; how much is used to acquire entire companies; and how much is put aside in liquid investments such as stocks and bonds.

It will also show how much money is being raised through the sale of these types of assets. If a company is making a large capital investment, it needs to consider where the cash is coming from to cover the investment (for example, is this cash coming from excess operating cash flow or from financing activities?).

Step 4: In the financing section, you need to examine each line item to determine whether the business is attracting capital or whether it repays capital and what is the nature of the sources of capital. If a company borrows every year, it needs to consider when the money might need to be repaid. The financial section of the report also typically provides data on dividend payments and securities repurchases, which are alternative means of returning capital to owners.

Horizontal-vertical analysis of the cash flow statement

IN vertical-horizontal In an income statement analysis, each element of income, expenses and profit is divided by a percentage of revenue. When analyzing a balance sheet, each element is divided by the total amount of assets. There are two alternative approaches for the cash flow statement. According to the first approach, each element of a cash inflow or outflow should be divided by the total amount of inflows or outflows, respectively. The second approach involves displaying each item as a share of revenue.

The format for displaying data in horizontal-vertical analysis makes it easier to see trends in cash flow. This method is also useful to the analyst in forecasting future cash flows because individual items in the statement (eg, depreciation, fixed capital costs, borrowings receivable) are expressed as a percentage of revenue. Thus, after the analyst forecasts the company's income, he will be able to determine the planned amount of cash flows in these areas.

Free Cash Flow Analysis

As stated in the description of the cash flow statement, it is desirable that operating cash flows be sufficient to cover capital expenditures. The excess of operating cash flow over capital expenditures is called free cash flow (FCF). For the purpose of valuing a company or its securities, the analyst may need to determine a more precise measure of free cash flow, such as free cash flow from the firm ( FCFF

The reason for adding interest payments to FCFF is that the indicator is a cash flow available to debt capital providers as well as equity. FCFF can also be calculated from cash flow from operating activities, for example:

FCFF= CFO + Int (1 - Income tax rate) - FCInv

CFO represents cash flow from operating activities under IFRS when a company reports its interest expense in operating activities. Under IFRS, if a company has shown interest and dividends received in investing activities, then these must be added back to the CFO to determine FCFF. In addition, if dividends paid were subtracted from the operating section, then they must be added back for purposes of calculating FCFF.

FCFE Free Cash Flow (Free Cash Flow) is the cash flow available to holders of a company's common stock after all operating expenses and borrowing costs (principal and interest) and after investments in working capital and fixed capital. FCFE can be calculated as follows:

FCFE= CFO - FCInv + Net borrowing - Net debt repayment

Positive FCFE means that the company has an excess of operating cash flow over the amounts needed to invest in the future and pay down debt. These funds will be available for distribution to owners. If the company's activities are profitable, and it also has the ability to effectively develop investment capital, then it is in the interests of the owners to reinvest available funds back into the company’s activities. Alternatively, dividends can be paid from the positive free cash flow from the capital.

Indicators that are used in the analysis of the cash flow statement

The cash flow statement contains information that can be analyzed over a period of time to obtain more full view about the company's past activities and its prospects for the future. This information can also be effectively used to compare performance and prospects various companies in the industry, as well as to compare companies in different industries. There are several ratios based on operating cash flow that may be useful in this analysis. These indicators are usually divided into indicators of cash flow efficiency (profitability) and indicators of cash flow coverage (solvency). Table 4 shows the calculations and interpretation of some of them.

Table 4 – Cash flow indicators

Indicators		What does it measure?
Cash flow efficiency indicators
Cash flow to revenue	CFO ÷ Revenue	Cash received per ruble of income
Cash flow to assets	CFO ÷ Average Assets	Cash received from the use of all company resources
Cash flow to equity	CFO ÷ Average Equity	Cash received from the use of owners' capital
Cash flow to profit	CFO ÷ Operating profit	Ability of core operations to generate profits
Cash flow per share	(CFO – dividends on preferred shares) ÷ number of common shares in circulation	Operating flow per share
Solvency indicators
Debt coverage level	CFO ÷ Total Debt	Financial risk and financial leverage
Interest coverage level	(CFO + Interest payments + Tax payments) ÷ Interest payments	Ability to meet interest obligations
Reinvestment level	CFO ÷ Cash paid for long-term assets	Ability to acquire assets from operating cash flows
Long-term debt coverage level	CFO ÷ Cash paid for long-term liabilities	Ability to cover long-term liabilities from operating cash flows
Dividend level	CFO ÷ Dividends Paid	Ability to pay dividends from operating cash flows
Level of investment and financing	CFO ÷ Cash outflow from investing and financing activities	Ability to acquire assets, cover debt and pay dividends from operating cash flows

As mentioned above, CFO (Cash Flow From Operating Activities) - cash flow from operating activities

Activities that generate cash flows are divided into three categories: operating activities, investing activities, and financing activities.
Companies may use the direct or indirect method to report operating cash flow:

- direct The method describes the inflow of operating cash depending on the source (for example, cash received from customers, cash received from investment income) and the outflow of operating cash depending on the direction of use (for example, cash paid to suppliers, cash paid for use of credit resources).

- indirect The method shows the relationship between net income and net cash flow from operating activities by adjusting net income for non-cash changes and decreases or increases in working capital.

The cash flow statement is related to and is derived in part from a company's income statement and balance sheet.
Although the indirect method is most often used by companies, an analyst can usually convert it to a direct format by following a simple three-step process.
An analyst may use horizontal-vertical analysis for the cash flow statement. There are two approaches to constructing a vertical analysis - by dividing individual outflows or inflows by the total amount of inflows and outflows, or by dividing individual elements by the amount of revenue.
The cash flow statement can be used to determine FCFF and FCFE.
In the process of analyzing the cash flow statement, you can also use financial indicators to measure company profitability, productivity and financial strength.

List of sources used

Thomas R. Robinson, International financial statement analysis / Wiley, 2008, 188 pp.

Kogdenko V.G., Economic analysis / Tutorial. - 2nd ed., revised. and additional - M.: Unity-Dana, 2011. - 399 p.

Buzyrev V.V., Nuzhina I.P. Analysis and diagnostics of financial and economic activities of a construction enterprise / Textbook. - M.: KnoRus, 2016. - 332 p.

Systematic cash flow analytics, from the point of view of practical management, is a useful tool for operational management organization in terms of management and financial accounting, as well as budgeting. Cash flow analytics provide a clear understanding of the working capital, liquidity and assets of a commercial organization. The report data is also used to forecast potential financial flows and distribute existing ones. And this is only if we talk about the “internal” functions of the DS movement report.

On the other hand, if we talk about the regulatory role of this instrument, state regulation also requires filling out commercial enterprise report to explain financial and investment performance during a given period.

Based on the possibilities of using this report, let’s look at the procedure for filling out a cash flow report using the example of a unified form, without specific numbers.

Application and meaning of ODDS

A report on the movement of money within an organization is one of the key management reports that can be easily obtained in almost any form of accounting. It contains information about the company's sources of money itself and its use over time.

The report reflects, directly or indirectly, all, or, in any case, known cash receipts into the company, classifying them according to their sources, and cash expenses (in other words, write-offs) indicating the areas of use within an identical period.

How financial instrument manager of an organization, reporting on the movement of money makes it possible from different angles, based on specific values, to analyze the production picture, liquidity, creditworthiness, in a word, to carry out a deep financial analysis companies based on facts.

Not only internal users of the organization access the factor report data on the movement of funds. The scope of its application is much wider: it is indispensable for external auditors or other interested parties, for example, investors, who with its help can obtain reliable information about the real volumes of expenses and income that the business of a given enterprise generates.

Reasoning on the scale of business as a multidisciplinary activity, we can conclude that the report data reflecting the movement of the company’s money contains the following information:

Sources of company income by areas;
Items and classification of expenses, as well as volumes of outgoing expenses;
Company performance in financially as the ratio of incoming money (income) and outgoing money (expenses), where the former exceed the latter;
The stability of the company and its ability to fulfill its obligations;
Accounting data indicating the sufficiency or insufficiency of the financial resources necessary to carry out the business;
Investment data in terms of ability to invest from own sources.

Figure 1. Sources of ODDS.

Requirements for drawing up and maintaining a cash flow report on the part of the state

Our country has legislation - No. 402-FZ, which establishes certain accounting requirements for businesses, which include standards for the form and composition of financial statements. For most organizations registered in our country, regulated reporting forms are applicable by order of the Ministry of Finance No. 66n and No. 43n.

In parallel, government agencies are preparing and agreeing on new federal and industry standards for accounting. But before they enter into force, it is necessary to comply with the requirements of the relevant instructions of the Ministry of Finance.

The rules for filling out a cash flow statement correspond to the general logic and requirements for the preparation of accounting statements prescribed in PBU 4/99. If the report is being prepared for internal corporate needs, then this is a comprehensive and satisfactory option.

If the report is an integral part of the document submitted to government bodies reporting, then it is recommended to prepare data in accordance with the rules of BU 23/2011.

How to fill out a cash flow statement

The itemized cash flow report includes incoming and outgoing transactions, as well as balances at the first and last date of the period. In other words, the cash flow statement shows how much cash entered the organization and how much the organization spent, as well as the ratio of these values as a result of this process (clauses 12 and 13 of the PBU). Balances are recorded for the company as a whole at the beginning and end of the period, taking into account the distributed structure of branches and representative offices within one legal entity.

The form, as we noted earlier, is approved by the state, along with the composition of business entities that mandatory must maintain and complete such a report. Virtually all legal entities conducting accounting must submit it to the Federal Tax Service, excluding simplified companies.

To ensure that filling out a cash flow statement does not cause difficulties and does not lead to errors, you need to know and follow the procedure for filling out a cash flow statement.

The report contains three sections, each of which is designed to display cash flow transactions (CF) grouped by type and their indicators:

Figure 2. Contents of the ODDS.

The structure of the report precisely reflects the “relationship” of this instrument with regulated reporting: as one of the elements of a company’s financial statements, ODDS allows you to check the balance sheet for the 3 fundamental sections of the activities of any organization listed above, which in turn also include a number of sections.

Filling out a cash flow statement - instructions (line by line)

Cash flows (CF) for current operations

We reflect the amounts of revenue and expenses

4111 = (A-incl. VAT) + (B-incl. VAT)*

*Please note that the amount is shown net of VAT, since it is displayed separately in the ODDS in accordance with legal recommendations.

4121-4129

*Amount D excluding VAT, because the rule is the same.
**VAT, separately summed up for the specified sections, should be included in the value of line 4119.

We reflect the results of investments

Inbox

Consumables

We will reflect the results of financial transactions for the period

In conclusion, we perform the following action: 4100 + 4200 + 4300, which will reflect the total amount by which the company’s funds have increased.

The balance of cash and cash equivalents available to the company at the end of the period is reflected on line 4500. The specified procedure for filling out the cash flow statement will allow you to avoid mistakes and correctly reflect all the necessary indicators.

Example of a completed cash flow statement

It is easy enough to illustrate filling out a cash flow statement with “unrealistic” data, but in my opinion it is not worth doing as it can lead to confusion. Therefore, as an example of filling out a cash flow statement matrix, let’s take a unified form without data, but indicating the items to fill out. As a basis, we will take the procedure for filling out the cash flow statement table indicated in the previous section.

Indicator name	Code	For a year XXXX	For the year ZZZZ (previous)
Cash flows from current operations	4110
Receipts all/incl.		#
From sales	4111	#
Leases, license fees, royalties, commissions, etc.	4112	-
From resale of financial investments	4113	-
Ave. receipts	4119	#
Payments all/incl.	4120	#	()
For suppliers/contractors	4121	#	()
Salary	4122	#	()
% on debt obligations	4123	#	()
Income tax	4124	#	()
Contributions to state extra-budgetary funds	4125	#
Other taxes and fees	4126	#
Other payments	4129	#	()
Balance of DP from current transactions	4100	#
Cash flows from investment operations
Receipts all/incl.	4210	#
Sale of non-current assets (except financial investments)	4211	#
Sale of shares of other organizations (participation interests)	4212	#
Repayment of loans provided, sale of debt securities (rights of claim of DS against other persons)	4213	-
Dividends, % on debt financial investments and other income from equity participation in other organizations	4214	-
Ave. receipts	4219	-
Payments all/incl.	4220	#	()
Acquisition, creation, modernization, reconstruction and preparation for use of non-current assets	4221	#	()
Purchase of shares of other organizations (participatory interests)	4222	(-)	()
Purchase of debt securities (rights to claim DS against other persons), provision of loans to other persons	4223	#	()
% on debt obligations included in the value of the investment asset	4224	(-)	()
Ave. payments	4219	(-)	()
Balance of DP from investment operations	4200	#
Cash flows from financial transactions
Receipts all/incl.	4310	#
Obtaining credits and loans	4311	#
Cash deposits of owners (participants)	4312	-
Issue of shares, increase in participation shares	4313	-
Issue of bonds, bills and other debt securities, etc.	4314	-
Ave. receipts	4319	-
Cash flows from financial transactions
Payments all/incl.	4320	#	()
Owners/participants: repurchase of shares (participation interests) or their withdrawal from membership	4321	(-)	()
Payment of dividends and other payments for the distribution of profits in favor of owners (participants)	4322	(-)	()
Repayment (redemption) of bills and other debt securities, repayment of loans and borrowings	4323	#	()
Ave. payments	4329	(-)	()
DP balance from financial transactions	4300	#
DP balance for the reporting period	4400	#
Balance of DS and cash equivalents at the beginning of the reporting period	4450	#
Balance of DS and cash equivalents at the end of the reporting period	4500	#
The influence of exchange rates in relation to national currencies	4490	-

An example of the implementation of ODDS in WA: Financier

WA's capabilities: Financier for the generation of any arbitrary financial statements using the example of the “Cash Flow Statement”

“WA: Financier” allows you to set up various reporting using the “Custom reporting” constructor by downloading excel templates and filling out these layouts using planned or actual data - internal data of the “Financier” itself or data from external accounting systems.

Our article “Filling out the ODDS” gives an example of filling out the regulated “Cash Flow Statement”. Let's see how to configure its filling in "WA: Financier".

The first step is to load the report layout from an excel file:

The layout is loaded exactly as configured in excel:

Each cell must be given a name like [NAME] and indicate the source from which the data for the report should be taken.

Source options may be as follows:

Filling in using any formula based on the cells of the current report or other reports;
filling in according to data stored within the WA: Financier system or in external accounting systems on the 1C platform.

The Report Settings stores a list of all sources configured/available for it:

For each source, the actual “place” in the accounting system is indicated, from where the report should “take” the data when generating:

After defining the list of sources, they need to be specified in each cell of the report:

After performing the above steps for all report cells, it is generated automatically based on the data specified in the report selections and source selections:

The example method of filling out a cash flow statement is called “direct”. The basis of the direct method of forming ODDS is the collection of information on various accounts of the company and its corresponding reflection in the context of items. But in the practice of financial management, there is also another method of filling out such a report - “indirect”.

In the future, the indirect method determines the company’s profit centers with greater accuracy and allows you to quickly make investment decisions. But, if we recall the very beginning of our article, where we talked about the regulatory role of the report, we can also find a significant “defect” of this method: the method is not used in accounting according to Russian standards, which means that in any case it will be considered as additional.

But in no case should we get the impression that by using different methods of filling out a cash flow statement, we can influence its structure. It remains unchanged, as it is determined by the areas of its application.

Conclusions

The cash flow statement is a convenient tool that is used in the operational and analytical management of a company. “Starting” with recording funds at the beginning of the period, and “ending” with calculating the balance at the end of the period, a cash flow statement, filled out correctly and in its entirety, contains comprehensive information on such areas of the company’s activities as operating activities, investments and finance.

Ultimately, a cash flow statement is both a measure of a company's current performance and a document that serves as an indicator of the success of the business's long-term prospects. It allows you to assess the company's operating liquidity, solvency and even financial elasticity.