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Empirical Study Concerning The Views On The Format Of Cash Flow Statements

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  • LUCIAN IOAN SABĂU

    (WEST UNIVERSITY OF TIMIȘOARA)

Abstract

Following the proposals about the new IFRS that would replace the existing standards on financial statement presentation in IFRSs, IAS 1 Presentation of Financial Statements and IAS 7 Statement of Cash Flows, we conduct an empirical study on the opinions regarding the format of the cash flow statement, and the most appropriate method of presentation. The objective of this research is to develop a critical analysis based on this literature, regarding the most appropriate method of presenting cash flow statements. The results of our research is that the direct method is the most adequate for statement of cash flows, being confirmed by most studies reviewed, most researchers considering this method of reporting as the most appropriate and useful, compared with reporting by using the indirect method.

Suggested Citation

  • Lucian Ioan Sabău, 2012. "Empirical Study Concerning The Views On The Format Of Cash Flow Statements," Anale. Seria Stiinte Economice. Timisoara, Faculty of Economics, Tibiscus University in Timisoara, vol. 0, pages 293-300, November.
    • Handle: RePEc:tdt:annals:v:xviii/supplement:y:2012:p:293-300
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    File URL: http://fse.tibiscus.ro/anale/Lucrari2012_2/AnaleFSE_2012_2_044.pdf
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    References listed on IDEAS

    as
    1. Gopal V. Krishnan & James A. Largay III, 2000. "The Predictive Ability of Direct Method Cash Flow Information," Journal of Business Finance & Accounting, Wiley Blackwell, vol. 27(1&2), pages 215-245.
    2. Gopal V. Krishnan & James A. Largay III, 2000. "The Predictive Ability of Direct Method Cash Flow Information," Journal of Business Finance & Accounting, Wiley Blackwell, vol. 27(1‐2), pages 215-245, January.
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    More about this item

    Keywords

    financial statements; statement of cash flow; direct method; indirect method;
    All these keywords.

    JEL classification:

    • M41 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Accounting

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