Ministry of Finance, Enterprise Accounting Guidelines - Cash Flow Statement (Revised)

Issued: January 18 2001
Effective: January 1 2001
Applicability: For the purposes of the Guidelines, "Cash" includes cash equivalents, which mean short-term investments with high liquidity, low value change risks and ease of conversion into a known amount of cash (Section Three).

Main contents: The Guidelines standardize the method of preparing cash flow statements and the information such statements should provide (Section One). Cash flows are classified into cash flow from operations, cash flow from investment and cash flow from fund raising (Section Four). While the Guidelines specify how cash flows shall be classified, it is recognized that such classification may not be appropriate for financial institutions, which may rationally determine the nature of their cash flows appropriate to their circumstances (Section 17). Nonetheless, a cash flow statement shall report on the cash flows of an enterprise by classifying them in the aforementioned manner (Section 20). A sample of cash flow statement is attached to the Guidelines for reference.

clp reference:3100/01.01.18(8)promulgated:2001-01-18effective:2001-01-01