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

The two objectives mentioned above are achieved through drafting the so-called cash flow statement. This document summarises the flows while explaining the results clearly and understandably to everyone. An analysis of national and international accounting doctrine and standards shows that many different reporting formats exist. Therefore, the statement's drafting is left to the analyst, who must opt for a clear, understandable form and accepted by most scholars and economic operators. It must make a chIAO (Italian Accounting Organism (Henceforth IAO, in italian language OIC))e based on the theoretical and practical considerations that each analyst develops in the context of financial reporting analysis. The objective of reporting, regardless of the technical format used, is to 'bring all flows concerning homogeneous transactions into a meaningful aggregate. In this sense, the company's operations are broken down into several homogeneous operations. The diversity of the various schemes found in doctrine and accounting standards is expressed in the different identification of significant sub-aggregates. In other words, company management is subdivided into aggregates identified according to different logics in the various schemes. Let's compare the formal structures proposed by the IAS i/IFRS international standards, and the Italian national accounting standards IAO (ITALIAN ACCOUNTING ORGANISM (HENCEFORTH IAO, IN ITALIAN LANGUAGE OIC)). The American accounting standards document 95/ASC 230 and the national or international doctrine; we can see how the schemes show profound diversifications at the level of form. It must well highlight the circumstance and that, in the face of different schemes, one finds identical flow values only represented differently and aggregated according to different logics. In the following pages, we will make a brief analysis of the schemes proposed by the leading national and international bodies, and we can already anticipate that these schemes do not provide important information that is instead required both to manage the company and to understand, from the outside, the dynamic financial situation of the company itself ap. At this point, one must ask whether the substance, which is the same in all schemes, prevails over the form, presenting different structures in the various cash flow statements regulated by accounting standards or doctrinal proposals. After analysing the numerous structures, comparing the various forms proposed at the national or international level by bodies and scholars, and after highlighting the limitations of these structures, we will offer the drafting of a sketch flow statement structure determined and studied in the context of an integrated information system, the definition and characteristics of which will be the subject of the next paragraph. II. T he F ormal S tructure of the C ash F low S tatement A ccording to IAS/IFRS, US GAAP P rinciples FASB 95 and ASC 230, P rinciples I mposed by I talian N ational L egislation, I talian N ational S tandards of I talian A ccounting O rganism ( H enceforth IAO, in I talian L anguage OIC)) a) International Ias 7 Standard The formal structure of the cash flow statement is the subject of a plurality of accounting standards issued by various national and international bodies. In this paragraph, we will focus our attention on the formal principles imposed by the international accounting standard IAS No. 7, the American GAAP standards FAB95 and ASC 230, and the regulations set by Italian national legislation, which, in essence, refers to the rules to be applied in structuring the cash flow statement to the Italian national accounting standards issued by the IAO (Italian accounting organism, henceforth IAO, in Italian language OIC). Here, we will limit ourselves to listing the various accounting principles relating to the cash flow statement without making any observations on the merits and limits of the structures proposed by the different accounting principles. The comments, in terms of the values and limitations of the structures presented by the various accounting principles, will be made in the following paragraph, where we will also propose a form of the statement that, independent of any accounting principle structure, summarises the merits that can be assigned to the international, American and Italian accounting principles and, at the same time, overcomes the limits that can instead be connected to such structures. Before addressing the summary of the contents of the cash flow statements provided for and regulated by the accounting as mentioned above standards, it is relevant to note how they all converge towards a notion of cash flow as cash flow and not net working capital flow. In the past decade, many accounting standards also referred to net working capital flows and, mainly, to net working capital related to core business activities. In some cases, it could see that this statement was recommended over the statement expressed in cash flows. At the same time, other standards assumed an alternative use of the statement described in cash flows or depicted in characteristic net working capital flows. This has changed profoundly in recent years, as all international and national bodies of almost all nations have agreed on the circumstance that flows expressed in terms of net working capital, and therefore said in terms of financial flows in the broadest sense, are characterised by a reduced informative capacity. and for this reason, all accounting standards now converge on 14 Global Journal of Management and Business Research Volume XXII Issue V Version I Year 2022 ( ) C © 2022 Global Journals 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?