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Objectives

Information about the cash flows of an enterprise is useful in providing users of financial statements with a basis of assess the ability of of the enterprises to generate cash and cash-equivalents and the needs of the enterprise to utilize those cash now. The economic taken by users require an evaluation of the ability of an enterprise to generate cash and cash-equivalent and the timing and certain of their generation.

The CFS deals with the provision of information about the historical changes in lash and cash equivalents of an enterprise by means of a cash- flows statement which classified cash flows during the period among (i) operating, (ii) Investing and (iii) financing activities.

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