The cash flow statement

British and American companies also produce a cash flow statement. This gives details of cash flows – money coming into and leaving the business, relating to:

– operations – day-to-day activities

– investing – buying or selling property, plant and equipment

– financing – issuing or repaying debt, or issuing shares

The cash flow statement shows how effectively a company generates and manages cash. Other names are sometimes used for it, including funds flow statement and source and application of funds statement.

British companies also have to produce a statement of total recognized gains and losses (STRGL), showing any gains and losses that are not included in the profit and loss account, such as the revaluation of fixed assets.

Vocabulary notes

1. operations – повседневная деятельность компании; операции

2. investing – инвестирование

3. financing – финансирование

4. issue debt – заем (привлечение заемных средств); выпуск ценных бумаг

5. funds flow statement – отчет об использовании денежных средств

6. source and application of funds statement – документ об источниках и использовании финансовых ресурсов (США)

7. statement of total recognized gains and losses (STRGL) – отчет об общих признанных прибылях и убытках