Credits: 6

Schedule: 28.10.2019 - 09.12.2019

Teacher in charge (valid 01.08.2018-31.07.2020): 

Assistant professor Emma-Riikka Myllymäki and Professor of Practice Jari Melgin


Contact information for the course (applies in this implementation): 

Questions about the course should be asked primarily

  • during the lectures
  • in the course website (in MyCourses) --> General discussion

Instructors' contact information:

  • Jari Melgin,, office U319, office hours by appointment
  • Emma-Riikka Myllymäki,, office X302, office hours by appointment

Teaching Period (valid 01.08.2018-31.07.2020): 

2018-2019: II (Fall 2018), Töölö Campus

2019-2020: II (Fall 2019), Otaniemi Campus

Learning Outcomes (valid 01.08.2018-31.07.2020): 

After completing the course, students will have knowledge needed in analyzing cash flow information from the perspective of an outside stakeholder. Moreover, students will have knowledge of balance sheet forecasting, liquidity planning and the basics of cash management from the perspective of a company management. Students will also be familiar with the research on cash flows.

Content (valid 01.08.2018-31.07.2020): 

The purpose of cash flow analyses; cash flow statement as a part of financial statements; cash flow -based ratios; financial statement users' perspective on cash flow information; the strengths and weaknesses of cash flow information in financial statement analysis; the connection between balance sheet and strategic liquidity planning and short term working capital and cash management; research on cash flows.

Assessment Methods and Criteria (valid 01.08.2018-31.07.2020): 

1. Exam (60 points) (60%)
2. Exercises (40 points) (40%)
To pass the course, student must obtain:
a) at least 30 points from the exam, and
b) at least 50 points from the whole course (exam + exercises).

Workload (valid 01.08.2018-31.07.2020): 

- Participation in lectures and in-class exercises, 24 h
- Self-directed studying incl. preparation for the lectures, exercises, and exam, 132 h
- Exam, 4 h

Study Material (valid 01.08.2018-31.07.2020): 

Readings announced at the beginning of the course.

Details on the course materials (applies in this implementation): 


  • IAS 7 Statement of Cash Flows.
  • Mackenzie, B., Njikizana, T., Coetsee, D., Chamboko, R., Colyvas,
    B., Hanekom, B., & Selbst, E. Wiley
    IFRS 2014: Interpretation and Application of International Financial
    Reporting Standards
    . E-book. Chapter 6: Statement of Cash Flows.
  • Scott, W.R. 2015. Financial Accounting Theory.
    th edition. Chapter 11: Earnings management.
  • Jury, T.D.H. 2012. Cash flow analyses and
    forecasting: the definitive guide to understanding and using published
    cash flow data.
  • Hales, J., and S. F. Orpurt. 2013. A review of
    academic research on the reporting of cash flows from operations. Accounting
    , 27(3): 539-578.
  • Dickinson, V. 2011. Cash flow patterns as a proxy
    for firm life cycle. The Accounting Review 86 (6): 1969–1994.
  • Orpurt, S. F., and Y. Zang. 2009. Do Direct Cash
    Flow Disclosures Help Predict Future Operating Cash Flows and Earnings? The
    Accounting Review
    84 (3): 893-935.
  • Nwaeze, E. T., S. S. M. Yang, and Q. J. Yin.
    2006. Accounting Information and CEO Compensation: The Role of Cash Flow
    from Operations in the Presence of Earnings. Contemporary Accounting
    23 (1): 227-265.
  • Lee,
    J.E., R. Glasscock, and M.S. Park. 2017. Does the ability of operating
    cash flows to measure firm performance improve during periods of financial
  • Lee, L. F. 2012. Incentives to Inflate Reported
    Cash from Operations Using Classification and Timing. The Accounting
    87 (1): 1-33.
  • Baños-Caballero, S., P. J. García-Teruel, &
    P. Martínez-Solano. 2010. Working Capital Management in SMEs. Accounting
    & Finance
    50: 511-527.
  • Barth,
    M., K. Li, and C.G. McClure. 2019. Evolution in value relevance of
    accounting information.
    paper. Stanford University.

also other articles as defined by the lecturers


  • List of readings
  • Lecture slides
  • Exercises
  • Discussions during the lectures and exercises

NB! The exam may include questions
from the reading material that are not covered during the lectures. The exam
may include questions from the lectures that are not covered in the reading

Substitutes for Courses (valid 01.08.2018-31.07.2020): 

22C00900 Kassavirta Analyysit.

Course Homepage (valid 01.08.2018-31.07.2020):

Prerequisites (valid 01.08.2018-31.07.2020): 

Introduction to Accounting (22A00100), Introduction to Financial Accounting (22C00100), Financial Accounting (22C00400) and Capstone BSc (22C99904), or comparable courses at another University.

Grading Scale (valid 01.08.2018-31.07.2020): 


Registration for Courses (valid 01.08.2018-31.07.2020): 

Via WebOodi. Please see WebOodi for the registration dates.

Further Information (valid 01.08.2018-31.07.2020): 

Maximum amount of students accepted to the course is 60. Attendance on the first lecture is mandatory.


Registration and further information