Cashflow: Difference between revisions

Revision as of 11:03, 11 May 2016

(CF).

The movement of cash in or out of a business, a project or a financial instrument in a particular period under review.

The cashflow for a given period may differ from the profit or loss for the same period because of:

Items in cashflow which are not part of profit or loss. For example capital expenditure or the collection of trade debtors arising and recognised in prior periods; and
Items in profit or loss which are not cashflows, such as depreciation, amortisation, or making accruals.

@@ Line 1: / Line 1: @@
 (CF).
 The movement of cash in or out of a business, a project or a financial instrument in a particular period under review.
 The cashflow for a given period may differ from the profit or loss for the same period because of:
-(1) Items in cashflow which are not part of profit or loss.  For example capital expenditure or the collection of trade debtors arising and recognised in prior periods; and
+#Items in cashflow which are not part of profit or loss.  For example capital expenditure or the collection of trade debtors arising and recognised in prior periods; and
+#Items in profit or loss which are not cashflows, such as depreciation, amortisation, or making accruals.
-(2) Items in profit or loss which are not cashflows, such as depreciation, amortisation, or making accruals.