5.3 CASH AND CASH EQUIVALENTS
5.3.1 Relevance for the Statement of Cash Flows
188.8.131.52 Cash and Cash Equivalents versus Funds
Determining changes in cash and cash equivalents is the focal point of the statement of cash flows, as cash flows are inflows and outflows of cash and cash equivalents.46
184.108.40.206 Correspondence with Captions in the Statement of Financial Position
Under IFRSs, U.S. GAAP, and Subsection 210-10-S99-1 (Regulation S-X) for commercial and industrial companies, the statement of financial position must display cash and cash equivalents.47 Under U.S. GAAP, title or titles for cash and cash equivalents used in the statement of financial position and in the statement of cash flows must correspond or be similar. Subtopic 230-10 (FASB Statement No. 95) permits the use simply of cash but not funds.48 Subsection 210-10-S99-1 (Regulations S-X, Rule 5-02) also uses cash and the expression cash and cash items.49 Registered investment companies and insurance companies must separately report a single caption for cash on hand and demand deposits. Interest-earning cash equivalents of insurance companies are instead part of short-term investments. Employee stock purchase, savings, ...