Introduction
In this introduction to group statements of cash flows, you'll learn the fundamental purpose and structure of cash flow statements and how they're used to assess an entity's ability to generate cash.
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In this lesson
- 0:00 Introduction to group cash flows
- 0:16 Objectives and benefits of cash flow statements
- 0:52 Cash flow statement structure and layout
- 1:34 Defining cash and cash equivalents
- 2:56 Identifying cash equivalents in practice
About this lesson
The session covers the standard cash flow proforma—moving from operating activities through investing and financing activities—and explains how movements in cash reconcile to the statement of financial position. You'll also explore the distinction between cash and cash equivalents, including practical examples of what qualifies (such as short-term, highly liquid investments with minimal risk) and what doesn't (equity investments, which are excluded due to their variable value). By understanding these foundations, you'll be better equipped to tackle more complex consolidated cash flow scenarios and foreign exchange considerations that follow in this module.
Duration: 4m
Transcript
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