METHODS OF DISCLOSING CASH FLOW STATEMENTS IN BRAZIL

• Autor(a) principal: Salotti, Bruno Meirelles
• Data de Publicação: 2008
• Outros Autores: Mitiyo Yamamoto, Marina
• Tipo de documento: Artigo
• Idioma: por
• Título da fonte: Revista Universo Contábil
• Texto Completo: https://ojsrevista.furb.br/ojs/index.php/universocontabil/article/view/594
• topic: Demonstração dos Fluxos de Caixa. Divulgação. Método de Divulgação.

One of the most discussed issues in Brazil recently has been the substitution of the Statement of Origins and Applications of Funds for the Statement of Cash Flow. This substitution is included in the project to change Law nº 6.404/76, known as the “Law for Public Companies”. Thus it seems necessary to discuss the Statement of Cash Flow, mainly its disclosure method: direct or indirect. The theory indicates that the Direct Method is simpler to understand than the Indirect Method. However, the Indirect Method is considered to be more informative because it reconciles earnings and cash. This paper analyses the opinions of academics, market analysts and accountants, and with the objective of identifying whether one of the disclosure methods is preferred. The results indicate that there is no specific preference for only one of the methods used in disclosing Statements of Cash Flow, indicating that that the choice of the disclosure method may be flexible, according to FASB and IASB fixed beforehand. Keywords: Statement of Cash Flow. Disclosure. Disclosure method.