Bloomberg Tax: Accounting Chair Pushes for New Look at Cash Flow Statement

Christine Smith, senior professor of practice in accounting, was interviewed by Bloomberg Tax for her reaction to a push by the chair of the Financial Accounting Standards Board to comprehensively reexamine how companies report the cash they generate and spend as such transactions get more complex.

The categories [operating, investing and financing activities] don’t do a good job telling the story of financial institutions, Tulane University senior professor Christine Smith said. Because these institutions borrow and lend money for a living, the cashflow statement can give a “murky, muddled picture.”

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https://news.bloombergtax.com/financial-accounting/accounting-chair-pushes-for-new-look-at-cash-flow-statement