Development of the Company's Cash Flow Accounting in the Context of New Requirements of International Financial Reporting Standards

Abstract

The scientific and professional accounting and auditing community has been widely discussing the transformation of the information environment for presenting the results of business conduct by commercial entities in the field of sustainable development in three vectors: environmental impact assessment, impact assessment for compliance with human rights and solving socially important tasks, and assessment of corporate governance efficiency. Cash flows are an important object of financial accounting in companies. Cash flows combine indicators used to make key decisions and reflect the effectiveness of compliance with corporate policies and implementation of sustainable development programs. Today's external environment is predetermined by the need to make financial decisions in real time. Thus, it is necessary to understand what cash flow the company has and what type of activity will generate cash flows in the future. Therefore, companies need to be guided by national and international accounting and financial reporting standards in terms of analytical disclosure of cash flow information in the sustainable development context. The presented research considers the conceptual apparatus, historical aspects of the accounting category “cash flows,” and contemporary approaches to forming cash flow reporting in accordance with certain provisions of international standards. The authors provide recommendations on developing cash flow accounting and reporting in the context of new requirements of international standards. The presented research discloses practice-oriented recommendations on forming the company's cash flow statements, as well as methodological aspects of analyzing financial statements on cash flows as an additional information environment for making decisions on the main and additional financing of various business areas.

Citation

Ergasheva, S.T., Khalikova, E.A., Mannapova, R.A. and Kholbekov, R.O. (2024), "Development of the Company's Cash Flow Accounting in the Context of New Requirements of International Financial Reporting Standards", Eshov, M.P., Abdurakhmanova, G.K., Burkhanov, A.U., Abdusalomova, N.B. and Ergasheva, S.T. (Ed.) Development of International Entrepreneurship Based on Corporate Accounting and Reporting According to IFRS (Advanced Series in Management, Vol. 33A), Emerald Publishing Limited, Leeds, pp. 65-73. https://doi.org/10.1108/S1877-63612024000033A008