RESEARCHING ACCOUNTING STANDARDS: DISSENTING VIEWS AND THE STATEMENT OF CASH FLOWS

The preparation of cash flow statements is required by Statement of Financial Accounting Standards No. 95, ‘‘The Statement of Cash Flows,’’ adopted by a four-to-three vote of the FASB. Several members of the Board took exception to various aspects of the statement, including (1) the classification of interest and dividends received and interest paid as cash flows from operations and (2) the use of the indirect method.