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Commission Regulation (EC) No 1725/2003
of 29 September 2003
adopting certain international accounting standards in
accordance with Regulation (EC) No 1606/2002
of the European Parliament and of the Council
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51. The separate disclosure of
cash flows that represent increases in operating capacity and
cash flows that are required to maintain operating capacity is
useful in enabling the user to determine whether the
enterprise is investing adequately in the maintenance of its
operating capacity. An enterprise that does not invest
adequately in the maintenance of its operating capacity may be
prejudicing future profitability for the sake of current
liquidity and distributions to owners.
52. The disclosure of segmental cash flows enables users to
obtain a better understanding of the relationship between the
cash flows of the business as a whole and those of its
component parts and the availability and variability of
segmental cash flows.
Effective Date 53. This International
Accounting Standard becomes operative for financial statements
covering periods beginning on or after 1 January 1994.
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