Cash Flow’s Link to Financials Targeted by Global Rulemakers

Links between the corporate cash flow statement and the financial accounts should be made more explicit, global standard-setters said Tuesday, after complaints from investors that there could be confusion over things like lease payments.

All 13 members of the International Accounting Standards Board voted to include a series of changes in proposals due to be published next year. These included linking information in the cash flow statement more clearly to financial statements to avoid confusion over non-cash transactions such as leases and debt-to-equity deals.

Currently, there are basic differences between the figures reported in each area. The statement only includes ...