Cash Flow Statement

I. Formal Definition

The financial statement that summarises cash inflows and outflows over a defined period, classified into operating, investing, and financing activities. The cash flow statement reconciles the change in cash position from one balance sheet to the next and is the federation-recognised authoritative source for cash-based metrics. The federation requires the cash flow statement to follow the GAAP or IFRS approach, with the indirect method reconciliation between net income and operating cash flow disclosed, and significant non-cash investing and financing activities footnoted under UFMS-001:5.1.

II. Etymology

A required statement under FASB Statement 95 of 1987 in the US and IAS 7 internationally; the funds flow predecessors date to the early twentieth century.

III. Federation Usage

Federation members publish cash flow statement following the adopted standard. The indirect method reconciliation is disclosed. Non-cash investing and financing activities are footnoted under MEV-Annex:6.1. Free cash flow derivations trace to operating cash flow.

IV. Related Terms

• p-and-l
• balance-sheet
• free-cash-flow
• cash-position

V. Authoritative Citations

• UFMS-001:5.1UFMS Article V - Cash Flow Statement
• MEV-Annex:6.1MEV Annex VI - Cash Flow Reporting

VI. Citation in BibTeX

@misc{ifo4_glossary_cash_flow_statement,
  title        = {{Cash Flow Statement}},
  author       = {{IFO4 Federation Editorial Board}},
  howpublished = {{IFO4 Federation Glossary, slug \texttt{cash-flow-statement}}},
  year         = {2026},
  url          = {https://ifo4.org/glossary/cash-flow-statement},
  note         = {Category: Accounting; key: CashFlowStatement}
}

VII. Challenge This Definition

Federation members and accredited practitioners may challenge any entry under TGS-002:1.7. Filed challenges are routed to the editorial board, triaged into the revision register, and resolved in writing on the public docket. The slug remains stable through any revision.