Improving the Usefulness of Cash Flow Statements for Financial Institutions

Projekt Start: 04/2016
Status: Fortlaufend
Forscher: Günther Gebhardt, Cédric Tonnerre, Christoph Weber
Kategorie: Financial Intermediation
Finanziert von: LOEWE


Cash flow statements (CFS) are an integral part of the core financial statements. They complement the statements of financial position and the statements of comprehensive income. Their objectives are “to access the ability of the entity to generate cash and cash equivalents and the needs of the entity to utilize those cash flows” (IAS 7.Objective). It is widely accepted and supported by academic studies, that CFS of nonfinancial companies provide useful information. The usefulness of CFS for financial institutions is, however, contested.

This project critically analyzes the contention that CFS for financial institutions will not be able to provide useful information by

  1. discussing the requirements for CFS in accounting standards and in particular specific requirements or options for financial institutions;
  2. providing evidence on the application of the requirements and options of accounting standards in the CFS of a sample of leading financial institutions (STOXX banks; ASX Top 100 banks; S&P banks);
  3. developing evidence based recommendations for improving accounting standards and thereby the usefulness of CFS for financial institutions.