Open AccessRelevant Cash Flows Information for Engineering & Construction’ Companies Investors
Author(s) -
Y. S. Pogorelov,
Valentina Dubovaya,
Anastasia Bilousova
Publication year - 2018
Publication title -
international journal of engineering and technology
Language(s) - English
Resource type - Journals
ISSN - 2227-524X
DOI - 10.14419/ijet.v7i3.2.14428
Subject(s) - cash flow statement , cash flow , cash flow forecasting , operating cash flow , cash management , finance , net present value , cash , terminal value , business , cash and cash equivalents , economics , microeconomics , production (economics)
Purpose of the article is to analyze and improve approaches of making financial reports about cash flows to provide relevant cash flows information for Engineering & Construction’ companies existing and potential investors. There were such research approaches used as analysis of financial reports, rating method and empirical analysis on open data. There is a fact found about non-compliance by Biggest Global Engineering & Construction’ companies of IAS 7 about reporting cash flows from operating activities using the direct method found. It was suggested to make all parts of statement of cash flows by direct method. It is grounded by topicality of such cash flows information for existing and potential investors, including making them modeling cash flows. It is recommended to expand using some indicators such as «Net Cash Flows from Operating Activities», «Net Cash Flows from Investing Activities», and «Net Cash Flows from Financing Activities» and «Cash Flows Receipts as the most objective one for characterizing economical activity of entities while making Global Business ratings. It is suggested to continue researches in direction of analyzing the best practical approaches to make report of Cash Flows from Operating, Investing & Financing Activities to generalize the best international experience.