Statements of Cash Flows: Three International Examples

This case introduces the Statement of Cash Flows by way of a general explanation of the purpose and format of the statement, followed by an assignment involving the analysis of three very different companies’ statements of cash flows. The latter should stimulate significant in-class discussions and learning opportunities. Although all 3 statements are IFRS-compliant, the examples include both the direct and indirect methods.

To teach students how to understand and interpret the information presented in the statement of cash flows; to introduce financial statement analysis of the cash flow statement.