Abstract
The Financial Accounting Standards Board's (FASB) Statement of Financial Accounting Standards alters the format and definitions used in the Statement of Changes in Financial Position. The new rules will not necessarily improve business forecasters' abilities to prepare more accurate cash flow projections for 3 reasons: 1. Despite bringing uniformity to funds flow reporting, no new ground is broken in terms of content. 2. The new rules continue the practice of reporting cash flows annually while all other important financial information is reported quarterly. 3. The new rules do not incorporate the disclosure requirements of the FASB's standard on segment reporting. The quarterly issuance of a segmented cash flow statement to overcome the deficiencies of the FASB's proposal is recommended. This kind of format helps business forecasters to determine segments: 1. with net cash inflows as well as outflows, 2. that are in the development stage with large capital and financing needs, and 3. that are being abandoned.