Introduction to Statement of cash flows
Thestatement of cash flows should assist users to assess the capability of a company to produce cash and to assess the need of company for cash. The presentation needs for this statement are set out in IAS 7 Statement of Cash Flows.
Notes
The notes play a vital role in helping users to be aware of the financial statements.
They will generally consist of the following information:
General points
The standard gives support for three main accounting conventions while preparing the financial statements. These are as follow:
At last, to enhance the transparency of financial statements, the standard says that:
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The omissions or misstatements in the financial statements are termed as Errors. They might take place for a variety of reasons that involve mathematical mistakes, oversights, misinterpretation of facts and fraud.
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