Global Journal of Management and Business Research, C: Finance, Volume 22 Issue 5

© 2022. Prof. Maria Silvia Avi. This research/review article is distributed under the terms of the Attribution-NonCommercial- NoDerivatives 4.0 International (CC BY-NC-ND 4.0). You must give appropriate credit to authors and reference this article if parts of the article are reproduced in any manner. Applicable licensing terms are at https://creativecommons.org/licenses/by-nc- nd/4.0/. Global Journal of Management and Business Research: C Administration and Management Volume 22 Issue 5 Version 1.0 Year 2022 Type: Double Blind Peer Reviewed International Research Journal Publisher: Global Journals Online ISSN: 2249-4588 & Print ISSN: 0975-5853 Does the Formal Structure of the Cash Flow Statement have an Impact on the Understanding of the Data Contained in the Report Explaining the Company's Financial Dynamics? By Prof. Maria Silvia Avi Abstract- The financial analysis of a company, implemented through ratios alone, can lead to making completely erroneous judgements about the dynamic development of the company's income and expenditure. For this reason, cash flows and the statement that summarises them represent essential elements of the study of the company's financial performance. Various international bodies have addressed this issue since, in most countries, the cash flow statement now identifies one of the elements that make up the financial reporting for the year, on par with the balance sheet and profit and loss. Here we will take a closer look at the central bodies that have addressed this issue and illustrate what has been said about cash flow and the cash flow statement by the American FASB, the IASB, the Italian Civil Code and the Italian Accounting Standards Board. As you will see, all of these bodies propose structures or examples of items requiring the highlighting and re-grouping of needs and sources into three aggregates: operating activities, investing activities and financing activities. Subsequently, we will point out that information limitations characterise these statements. Keywords: cash flow Statement, cash flow, net working capital, cash flow, formal structure of the cash flow Statement, operating activities, financing activities and investing activities, direct method of drafting cash flow Statement, indirect method of preparing cash flow Statement. GJMBR-C Classification: DDC Code: 658.15224 LCC Code: HD30.28 DoestheFormalStructureoftheCashFlowStatementhaveanImpactontheUnderstandingoftheDataContainedintheReportExplainingtheCompanysFinancialDynamics Strictly as per the compliance and regulations of: