TITLE:
Cash Flow Analysis Based on International Accounting Standards (IAS): A Critical Evaluation
AUTHORS:
Kanellos Toudas, Alexandra Goula, Marios Menexiadis, Paraskevi Boufounou, Alexandros Garefalakis
KEYWORDS:
Financial Statement Analysis, International Accounting Standards, Cash Flow Statement, Equity, Debt
JOURNAL NAME:
Theoretical Economics Letters,
Vol.12 No.5,
October
18,
2022
ABSTRACT: Purpose: The purpose of this article is to investigate the importance of using
financial ratio analysis following the adoption of International Accounting
Standards. Design/methodology/approach: The methodology used
investigates the theoretical aspects related to the purpose of financial
statements analysis and the introduction of IAS, critically evaluating their
differences with Greek Accounting Standards as well. Furthermore, it presents
how to prepare the Cash Flow Statement. Findings: The study of cash
flows and their use contributes to the understanding of the ability of an
entity to generate cash and cash equivalents through its operating activities
and to ensure its smooth operation through its investment and financing
activities. Originality: The study assesses the importance of the IAS
financial ratio analysis, studying the contributions of the Cash Flow Statement
to different sources of activities,
and evaluating the application of the direct and indirect methods.