One of the most common myths in corporate finance and financial statement analysis is that while income statements and balance sheets tend to be incomparable and may be manipulated, reported corporate cash flows are immune to such distortions. However, this is not true, since there exist multiple factors that may introduce a lot of “noise” into published cash flow statements. In this lecture some of the most common pitfalls of analyzing corporate cash flows will be discussed.

We have invited Jacek Welc, Wroclaw University of Economics and SRH Berlin University of Applied and Sciences, to discuss, how analyst and other user of financial disclosures can extract, analyze, comprehend and restate information from company financial disclosures, in order to decipher valuable information, when making investment decisions.