The term Cash flow and its semantic content are frequently used among practitioners and academic
accountants without any doubt or knowledge of its semantic content. The authors of course books in the
domain of financial accounting use this term without providing its definition, as they consider it clear
and familiar. If we take into consideration the fact that this term is widely used in financial analysis,
it seems that its content should be clearly stated, or else the results of the analysis may be jeopardized.
When we observe the academic literature in the are of financial statement analysis, there is certain
confusion regarding the content of this term. By using the content analysis and reading the texts from
the financial analysis and accounting textbooks, we have found out that no author is trying to define
the term Cash flow, and that they use the term without providing any explanation. This confusion
has reached a wider scope after the IASC (now IASB) adopted the IAS 7 Cash flow statement, reporting
on various Cash flow segments: Operating cash flow, Investment cash flow and Cash flows from
financing activities. As a result of imposing mandatory reporting on the given Cash flow segments,
a lot of confusion has been created about the meaning of this term.
V. Pavlović, G. Knežević, A. Marai, “SEMANTIC CONTENT OF THE TERM CASH FLOW,” in FINIZ 2015 - Contemporary Financial Management, Belgrade, Singidunum University, Serbia, 2015, pp. 174-176. doi: 10.15308/finiz-2015-174-176
Pavlović, V., Knežević, G., Marai, A. (2015). SEMANTIC CONTENT OF THE TERM CASH FLOW. Paper presented at FINIZ 2015 - Contemporary Financial Management. doi:10.15308/finiz-2015-174-176