Statement of Cash Flows in the Bank Accounting’s Praxis – a Useful Tool or Unnecessary Obligation?
Statement of Cash Flows in the Bank Accounting’s Praxis – a Useful Tool or Unnecessary Obligation?

Summary/Abstract: The statement of cash flows is said to present a more precise picture of theenterprise’s financial situation, in comparison to the static statement of financial position(balance sheet), underlining factors contributing to the liquidity or factors generatingthe liquidity risk. Moreover, there can be identified the part of profit, hidden in accruals,or consequences of the dividend payment. The mandatory scheme of the cash flowstatement of banks is however too general, disabling the detailed analysis of changes involumes of particular components of assets and liabilities, especially when the absolutesize or currency structure of changes is concerned. The article includes some criticalcomments and suggestions of improvements, to achieve a better information for externalreport users (shareholders, market analysts etc.), since regulatory authorities apply moresophisticated report sets in this area.

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