Cashflow

(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

(2) Items in profit or loss which are not cashflows, such as depreciation, amortisation, or making accruals.

See also

• Accrual
• Amortisation
• Cash
• Cash conversion cycle
• Depreciation
• Free cash flow
• Incremental cash flows