ABSTRACT
A statement of cash flows is required as part of a full set of financial statements for all business enterprises other than defined benefit pension plans and certain other employee benefit plans and highly liquid investment companies that meet specified conditions. Generally, cash flow information about the gross amounts of cash receipts and cash payments during a period is more relevant than information about net amounts of cash receipts and payments. Cash flows from operating activities are generally the cash effects of transactions and other events that enter into the determination of net income. Investing activities exclude acquiring and disposing of certain loans or other debt or equity instruments that are acquired specifically for resale. Foreign operations reports that the reporting currency equivalent of foreign currency cash flows using the exchange rates. The reconciliation of net income to net cash flow from operating activities provides the direct or indirect method of reporting net cash flow.
