【正文】 ds for the operation cycle, and as a result of a decrease in the rotation speed of the current assets. On the contrary, the less profitable panies can maintain a satisfying liquidity in the absence of investments or through the progressive decrease of their value. As a result, liquidity, which depends on the pany’s profitability and on its financial structure, is an essential approach drawing the creditors’ attention. The difference between the revenues capable of generating profits and the expenses capable of generating payments is represented by the cash flow, an index that connects profitability and liquidity (Ooghe H., Van Wymeersch C., 2000). Fourth, The CashFlow Statement, by taking the census of pany profits and payments, allows knowing its historical capacity to generate cash flow and offers the elements that lie at the basis of predictions, on short term, of the future cash flows. The cashflow information is considered by the financialaccounting information users one of the most intelligible and objective source of information that presents the facts without leaving space to subjective interpretations. As a result, the cashflow information represents the essence of some new modern methods of business evaluation (a method based on updating/capitalization of future cash flows) (Pantea ., Deaconu A., 2004).Finally (without pretending to mention all the uses of this situation), The CashFlow Statement offers extra information about a series of aspects that have already been analyzed statically, on the account of financial statements. For example, the change of the pany net assets can be statically analyzed starting from the balance sheet, thus being the expression of unsettled agreements. The CashFlow Statement presents the change of net assets, dynamically, materialized in the profits and payments of the respective agreements carried out during the financial exercise. Consequently, the financial structure is analyzed starting from the Balance sheet and The statement of changing equity capital. Such an analysis mainly reflects the amounts belonging to the financiers, due to be repaid at the end of the financial exercise, without revealing their dynamics. The CashFlow Statement presents the profits and payments concerning the external capital ing from the shareholders, creditors, as well as their payment by dividends and interests. The relationship between the pany’s profitability and the cash flows can be emphasized by analyzing, in dynamics, the way in which the price variation influences the period turnover and profits.IAS 7 “The CashFlow Statement” synthesizes the informational utility of the CashFlow Statement mentioning that the information offered to the financial statement users is the basis for: evaluating the pany’s capacity to generate cash and cash equivalents。 identifying the moment of cash and cash equivalents occurrence。 knowing the destination of the respective cash flows (in order to restart the operation cycle, the investments, financiers’ payment).3. The determination and interpretation methodology of cash flowThe Cashflow Statement describes the way in which the operation, investment and financing activities determine the positive (profits) and negative (payments) cash flows during the financial year. Thus the cash flows are divided upon the activities that generated or consumed them in: cash flows from the operation activities。 cash flows from the investment activities。 cash flows from the financing activities.In IAS 7 “The CashFlow Statement” it is mentioned that the operation cashflows (OCF) are essential for appreciating the pany’s financial performance. It is on their dimension that the pany capacity depends in order to: maintain the production capacity, achieve new investments, reward new dividends, and repay loans without referring to expensive external financing resources.The CashFlow Statement turns the operation result into an effectively cashed result. Cashflows from investment activities (CFI) are imputable to the operations of investment/disinvestment in/from invested and financial capital and reflect the deficit or surplus generated by such operations.The cash flows from financing activities (CFF) present the profits and payments related to the external finances to which the pany refers, when the cash resulted from the operation activities was insufficient to cover the investment operations and to reward the financiers (banks, shareholders).The separation of flows in relation to their origin has the advantage of further explanations concerning the pany’s financial position, by means of the partial balances resulted from paring the profits and payments specific to each activity. Simultaneously, the separate emphasis on cash and cash equivalents resulted from the period agreements and from cash surplus investments allows the factorial analysis of their variation during the respective period and the identification of the activity that generated or consumed the highest cash flows. The total cash flow is determined according to the puting method of cash flows from exploitation activities, using the direct or indirect method. The direct method operates only with cashins and payments information. According to this method, the cash flows corresponding to the three activities are puted as the difference between the effective cashins and payments corresponding to the transactions and events that took place within the pany, during a financial exercise. The direct method is favored by investors, as it represents the starting point in making forecasts about cash flows, with the purpose to establish the pany’s value. The indirect method is easier to apply and preferred, according to specialists, by the managers who do not want, as we previously stated, to present to the external users the real image about their pany’s liquidity and solvency. It implies determining the cash flows from the operation activities by means of the informati