Testing the impact of the statement of cash flows on the companies from MureŞ County versus the need of cash flow information required by other entities in the same area

Article Type: AMIS statement and abstracts From: International Journal of Accounting and Information Management, Volume 18, Issue 1

Abstract

In Romania, the presentation of statement of cash flows is compulsory only for certain entities, while cash flow information represents an essential component of analyze. Our study seeks to identify the need of cash flow information in the entities from MureŞ County, according to the specificity of the economic, social and financial environment. The main objectives of our study are: to identify in what extent the companies from county MureŞ feel the need for information provide by statement of cash flows; to identify, in direct relation with the size of the company, the real user of information provided by statement of cash flows; to identify the purpose of cash flow information in the financial management of the entity and who are the main users of this information; and to identify which entity should prepare the statement of cash flows, for a complete set of financial statements. We hypothesize that,although an entity should prepare a cash flow statement just if it is compulsory, the need for this kind of information will determine the potential users to require information based on a cash-flow analysis. To collect data for our survey, we sent out questionnaires to the companies from MureŞ County.

Keywords Statement of cash flows, Cash flow information,Users of financial information, Usefulness of cash flow information

Irina PăŞcan, Ramona Neag and Ildiko Virag

Petru Maior University of Târgu MureŞ, Târgu MureŞ, Romania

Corresponding author

Irina PăŞcan can be contacted at: pascanirina@yahoo.com