Information about the cash flow of an enterprise is useful in proving users of financial statements with basis to assess the ability of the enterprise to generate cash and cash equivalents and the needs of the enterprise to utilize these cash flows. The standard deals with the provision of information about the changes in cash and cash equivalents of an enterprise by means of a cash flow statements which classifies cash flows during the period from operating, investing and financing activities. This paper deals in cash flow statements and their practical relevance with respect to economic decisions that are taken by uses require in evaluation of the ability of an enterprise to generate cash and cash equivalents are the timing and certainty of their generation.