The statement of cash flows
. The statement of profit or loss is the only statement that counts as it shows the key figure in any set of financial statements, the profit an organization has made during each accounting period.

. Statements of cash flows are not distorted by the timing of income and expenditure recognition.

. Profit = cash so the statement of profit or loss is the only statement that is needed to make an assessment of an entity's cash inflows and outflows.