Open AccessCash Flow Accounting: is It Time For Increased Disclosures?
Author(s) -
John E. McEnroe
Publication year - 2011
Publication title -
journal of applied business research
Language(s) - English
Resource type - Journals
eISSN - 2157-8834
pISSN - 0892-7626
DOI - 10.19030/jabr.v12i1.5836
Subject(s) - cash flow , cash flow statement , accounting , cash flow forecasting , operating cash flow , cash management , business , cash and cash equivalents , cash on cash return , finance
Cash flow reporting has attracted increased attention in the United States, especially in the past decade. However, despite the use of per share cash flow information by security analysts, the Financial Accounting Standards Board (FASB) has prohibited its disclosure. This article provides a historical perspective of cash flow accounting in the U.S., as well as a discussion of cash flow advocates. The final section presents arguments for increased disclosures in the area of cash flows, including operating cash flow on a per share basis and a schedule of free cash flows.