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Analysing the Statement of Cashflows
Author(s) -
Sharma Divesh
Publication year - 1996
Publication title -
australian accounting review
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.551
H-Index - 36
eISSN - 1835-2561
pISSN - 1035-6908
DOI - 10.1111/j.1835-2561.1996.tb00015.x
Subject(s) - cash flow statement , cash flow , statement (logic) , financial statement , accounting , statement of changes in financial position , financial statement analysis , accrual , business , economics , financial analysis , actuarial science , political science , audit , financial accounting , accounting information system , law , earnings
Australian public companies have been required to report a statement of cashflows since 30 June 1992. Since then, little has been written on the usefulness of the cashflow statement. This paper suggests some cashflow ratios and explores the usefulness of the statement through a financial analysis of Brash Holdings Ltd. The paper particularly emphasises cashflow ratios derived wholly from the statement of cashflows and suggests that ratios derived in this way are a useful analysis tool. The application to Brash Holdings also serves as a useful pedagogic instrument for financial analysis using cashflow and accrual information.