The statement of cash flows
. Statements of cash flows just tell us about the cash received and the cash paid during an accounting period while telling us nothing about the cash generating capacity of a business.

. When reviewing the statement of cash flows, it is not important for users to know how profitable an organization is.

. Statements of cash flows cannot be manipulated to present the picture that directors want to show.

. The ability of entities to generate cash can only be evaluated if users are presented with a statement of financial position, a statement of profit or loss and a statement of cash flows.