When preparing statement of cash flows there are things that you always come across – change in inventories, payables and receivables, payment and receiving of loans and fixed assets depreciation, acquisitions etc. These are the first things that are usually entered into the statement and rarely forgotten. You simply have most dealings with those balances daily and as such, you are more used to noticing when they are missing.

After you have entered into the statement all the possible cash flows you know and regardless of its adding up with the actual change in the cash balances or not, think at least once and thoroughly – did you get everything? Are all the transactions and cash flows reflected on the statement?

Pay special attention to everything that is one off and happened just this year – is it included? List all unusual transactions recognized in the reporting period and make sure they are also disclosed in the statement.

The reason behind doing this check regardless of all lines already adding up as the actual change is simple – we have seen in practice that still some transactions have not been disclosed or are simply part of another cash flow when they should be disclosed separately – i.e. loan receivables are never shown as a part of change in receivables, but gross as granted and received repayment. The net effect doesn’t change the statement’s result, but it does help with making sure the statement gives a true and fair view of the cash flows of the company.

So, did you get everything?