Global Standard Setters to Look at Cash Flow Statement Revamp

Global standard setters voted Wednesday to research changes to cash flow statement rules to give investors the greater level of detail they’ve been seeking to better analyze and compare companies’ financial performance.

All 14 members of the International Accounting Standards Board voted to look into reforms to roughly 30-year-old rules for how companies record the movement of cash over a set period of time. Prior research found that investors often had to adjust the statement for items such as research and development spending, which is sometimes not classified as an investment activity.

Board members generally favored giving more detailed information ...