Statement of Cash Flows: History, Practice, and the Classroom

Abstract

Purpose

Despite the fact that learning the mechanics or the knowledge of how to prepare the Statement of Cash Flows (SCF) is not highly complex, students continually struggle. This paper summarizes the history along with the importance and value-relevance of the SCF in practice to better inform the classroom.

Methodology/approach

Specifically, I examine pedagogies, tools, and delivery methods from previous studies and suggest areas for future education-based research studies.

Findings

The use of the SCF in practice has persisted over centuries. I explore methods of incorporating the SCF into the classroom, including the implications of McNellis (2015) and Frischmann, Pumphrey, and Santhanakrishnan (2015). I also examine the use of technology in the classroom and online delivery.

Originality/value

Academics and administrators should find this paper helpful as it provides a summary of examples for the classroom, which could lead to continuous curriculum improvement. For many universities, maintenance of program accreditation mandates assessing learning and, therefore, continuous curriculum improvement.

Citation

Davis, A.B. (2015), "Statement of Cash Flows: History, Practice, and the Classroom", Advances in Accounting Education: Teaching and Curriculum Innovations (Advances in Accounting Education, Vol. 17), Emerald Group Publishing Limited, Leeds, pp. 101-113. https://doi.org/10.1108/S1085-462220150000017016