IDEAS home Printed from
MyIDEAS: Log in (now much improved!) to save this article

Cash Flow Statements

Listed author(s):
  • Jadranka Kapic


    (University of Sarajevo, Faculty of Economy)

Registered author(s):

    Financial statements are aimed at providing information that can be used by investors and creditors to forecast, compare and evaluate potential money in cash flows for their needs by the amount, the time schedule and the characteristic risks. The purpose of financial statements is to provide the beneficiaries with information to forecast, compare and evaluate the financial position, profit and loss levels and financial position changes, that is, the information on how the company acquired and spent the money, and on the company’s debts and repayment of debts, and on the capital transactions, including payments of dividends and other distributions to the proprietors, as well as all other factors that influence the company’s liquidity and ability to pay. This information should be useful to a wide circle of beneficiaries in the business decision-making process. In their views of the purposes of financial statements, the International Accounting Standards Committee indicates that «economic decisions of financial statement beneficiaries require evaluation of the company's ability to produce cash and cash equivalents, as well as the time schedule and the certainty of their production, pointing, naturally, to the basic financial statements, that is, the balance sheets, as financial statements on financial positions (Item 16), and the profit and loss balance, as the financial statements on the company’s performance (Item 17), but also to the financial statements on the changes in the financial positions, primarily as financial statements (Item 18), the unsurpassable information sources for the forecast, the comparison, and the evaluation of the company by the beneficiaries.

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

    File URL:
    Download Restriction: no

    Article provided by Institute of Economic Sciences in its journal Economic Analysis.

    Volume (Year): 42 (2009)
    Issue (Month): 3-4 ()
    Pages: 38-49

    in new window

    Handle: RePEc:ibg:eajour:v:42:y:2009:i:3-4:p:38-49
    Contact details of provider: Postal:
    12 Zmaj Jovina St, 11000 Belgrade, Serbia

    Phone: +381 11 2622 357, 2623-055
    Fax: +381 11 2181 471
    Web page:

    More information through EDIRC

    No references listed on IDEAS
    You can help add them by filling out this form.

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    When requesting a correction, please mention this item's handle: RePEc:ibg:eajour:v:42:y:2009:i:3-4:p:38-49. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Zorica Bozic)

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.