The Cash of The Big Bulgarian Companies: What Do Their Cash Flow Statements Show and What Do Not?
The Cash of The Big Bulgarian Companies: What Do Their Cash Flow Statements Show and What Do Not?

Author(s): Fanya Filipova, Teodora Zapryanova, Atanas Atanasov, Rumiana Marinova
Subject(s): Economy, Business Economy / Management, Accounting - Business Administration, Socio-Economic Research
Published by: Университет за национално и световно стопанство (УНСС)
Keywords: Cash Flow Statement; direct and indirect method; IAS 7; SCF analysis; free cash flow; cash and cash equivalents
Summary/Abstract: The subject of the study is the information about cash and cash flows of ten largest Bulgarian companies, which in recent years are almost constantly present in the annual ranking of the international insurance company Coface "CEE Top 500 Ranking". The researched period is between 2019 - 2022. The aim is to present and comment on several of the most important financial indicators, also used by banks creditors, calculated mainly from statement of cash flow (SCF) and their relationship with other statements of the annual financial report (with the profits/losses of these companies; with their revenues; with their indebtedness; with the net change in cash and cash equivalents, etc.). Based on this, the information is defined that the SCF directly does NOT provide, or is not visible in the SCF prepared by the direct method. Conclusions are formulated related to some identified gaps and weaknesses in the SCFs of the 10 Bulgarian companies, including the disclosure of the information (minimum disclosure requirements) related to them, according to the requirements of IAS 7. Through the research, an attempt is made to define the usefulness of the information from the SCF, but also to emphasize the need to check its quality, through cross-checking (binding) with other data in financial statements and through proposals for changes in IAS 7.

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