ASC 230 Statement of Cash Flows

ASC 230, statement of cash flows contains ASC 230-10 Overall that establishes standards for cash flow reporting in general purpose financial statements. The statement of cash flows is a required part of a complete set of financial statements for business enterprises and not-for-profit organizations. The primary purpose of the statement of cash flows is to provide information about cash receipts and cash payments of an entity during a period. A secondary purpose is to provide information about the entity's investing and financing activities during the period. The statement of cash flows helps investors and creditors assess ability to generate future positive cash flows, ability to meet obligations and pay dividends, reasons for differences between net income and net cash receipts and payments and the cash and noncash aspects of investing and financing transactions on an entity's financial position. It includes only inflows and outflows of cash and cash equivalents.