Under which accounting standard , cash flow statement is prepared ?

Accounting Standard (AS)3  Cash Flow Statements

Statement of cash flows built on the cash basis

cash basis 

IAS7

IAS-7

Statement of the cash flow is itself referred as a standard in International Accounting Standards "IAS7"

There are also two ways to prepare the Statement of Cash Flow.

1- Direct Method

2- Indirect Method

We can only apply Direct method if we are using the Double Entry system of the Accounting cycle or in easy words we are given with Statement of Comprehensive Income and Balance sheet of current year and previous year.

Indirect method can also be applied even in the absence of the Statement of Comprehensive Income.

For further clarifications about the Cash Flow Statements you can also visit the link below.

http://www.iasplus.com/en/standards/ias/ias7

Financial Statement

The Statement of Cash Flows is one of the main financial statements. It is to accompany the income statement, balance sheet, and statement of stockholders' equity.

In fact, the Cash Flow Statement suppose to be prepared because the accrual basis of accounting reports the revenue when earned and expense when incurred.

The statement of cash flow reports the cash inflows as positive amounts and the cash outflows as negative amounts.

• The major sources and uses of cash during the period of the income statement

• A reconciliation of the change in an organization's cash and cash equivalents (which are reported on the beginning and ending balance sheets)

• Supplementary information including the amount of income taxes paid, the amount of interest paid means operating activities, and significant noncash investing and financing activities.

The statement of cash flow is important because investors, lenders, financial analysts, and others are interested in an organization's major cash inflows and outflows.

Statement of cash flows is basically standard of the International Accounting Standards