Accounting Board Sets Sights on Bank Cash Flow Statement Tweaks

Banks and financial institutions would have to add new details to their cash flow statements under an early-stage plan from the US accounting standard-setter.

The goal: Make financial institution cash flow statements relevant enough that investors and analysts actually use them, Financial Accounting Standards Board members said Wednesday as they unanimously voted to add the project to the board’s active agenda.

Most investors specializing in banking focus on the income statement and balance sheet and ignore financial institution statements of cash flows, said FASB member Frederick Cannon, who was a bank analyst before joining the accounting board.

“Only occasionally a ...