Cash flow statement

The cash flow statement, also called cash flow statement, has to make the goal of transparency about the cash flow of a company. The change in the liquidity potential to be quantified over time and the causes of the changes are highlighted.

General

The term " cash flow statement " is actually a misnomer, as the capital is not liquid, usually and mostly barely moved within a year. A correct name and also a better translation of the English term " cash flow statement" would be the term " cash flow statement ". This term is sometimes used in Switzerland, but has not been enforced.

For presentation of the cash flow one usually uses the so-called indirect method: As with the indirect method of reporting cash flows, cash receipts and payments of income and expenses and from changes in assets and liabilities are derived.

By the classical profit and loss account in accordance with § 275 HGB and the sense of IFRS are compared with expenses (net assets losses ) and income (net assets increases). In order to assess the solvency of a company, but deposits and withdrawals, and the cash flows must be analyzed within the company. The inadequate focus on liquidity of the financial statements obscures the clear insight into the company's financial position. It is not guaranteed that impending financial constraints and thus a reason for insolvency (§ 17, § 18 Insolvency Code ) are detected in time or at all.

A distinction is made between retrospective and prospective cash flow statements. These differ only with respect to the chosen observation period:

  • Retrospective Statement of Cash Flows are focused on the past and present have annual financial statements for the foundation. Therefore, they are objectively verifiable, but not serve as a forecasting tool.
  • Prospective Statement of Cash Flows, called financial plan based on projected profit and loss accounts. They are future-oriented, serving the forecasting and planning and are only suitable for assessing the future solvency.

Cash flow statement in accordance with HGB / DRS

The cash flow statement is an integral part of the consolidated financial statements in accordance with the German Commercial Code ( § 297 paragraph 1 HGB). Publicly traded corporations that are not required to prepare consolidated financial statements have, the annual financial statements in addition to a cash flow statement to expand ( § 264 paragraph 1 sentence 2 HGB).

According to the recommendations of the German Accounting Standards Board ( DRS 2 ) is constructed an indirect cash flow statement as follows:

Cash flow statement in accordance with IFRS

In accordance with IAS 1.10d of financial statements includes a cash flow statement under IFRS. The presentation is based on IAS 7

Cash flow statement according to DVFA / SG

Simple and significant cash flow calculation for works councils and employee representatives and employee representatives in economic committees in accordance with the recommendation of the German Association for Financial Analysis and Asset Management (DVFA ) and the Schmalenbach Society ( SG):

Depreciation Accounts receivable Fixed asset
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