<Li> indicate the amount, timing and probability of future cash flows </Li> <P> The cash flow statement has been adopted as a standard financial statement because it eliminates allocations, which might be derived from different accounting methods, such as various timeframes for depreciating fixed assets . </P> <P> Cash basis financial statements were very common before accrual basis financial statements . The "flow of funds" statements of the past were cash flow statements . </P> <P> In 1863, the Dowlais Iron Company had recovered from a business slump, but had no cash to invest for a new blast furnace, despite having made a profit . To explain why there were no funds to invest, the manager made a new financial statement that was called a comparison balance sheet, which showed that the company was holding too much inventory . This new financial statement was the genesis of cash flow statement that is used today . </P>

Where does intangible assets go on the cash flow statement