What is cash flow statement as per Accounting Standard 3?

This accounting standard accounts for information about changes in cash and cash equivalents of an entity during a particular period. Such information is disclosed in the cash flow statement indicating cash flows from operating, investing and financing activities during an accounting period.

Does GAAP require statement of cash flows?

GAAP also requires a cash flow statement, which acts as a record of cash as it enters and leaves the company. The cash flow statement is crucial because the income statement and balance sheet are constructed using the accrual basis of accounting, which largely ignores real cash flow.

How does GAAP classify cash flows as operating investing and financing?

Finance lease payments are classified in the same way as all lease payments under IFRS Standards. Both GAAPs classify the following as operating cash flows: payments for short-term leases and leases of low-value assets, and variable lease payments not included in the lease liability (as measured under applicable GAAP).

What is the correct order of cash flow statement?

Question: Which of the following is the correct order of the sections on a statement of cash flows? a. The correct order is operating, financing, investing.

What are GAAP compliant financial statements?

GAAP is a set of procedures and guidelines used by companies to prepare their financial statements and other accounting disclosures. The standards are prepared by the Financial Accounting Standards Board (FASB), which is an independent non-profit organization.

Which of the following is the correct classification of cash flows under IFRS and U.S. GAAP?

U.S. GAAP allow to classify them as operating activities only. Under IFRS, interest paid and dividend paid are classified either as an operating or as a financing activity. On the other hand, according to U.S. GAAP, interest paid is an operating activity and dividend paid is a financing activity.