Title:
THE EFFECT OF CASH FLOWS INDICATORS BASED ON IAS 7 IN MANAGING LIQUIDITY RISKS WITHIN INSURANCE COMPANIES

Authors:
Emad Ghafoori Abood AL Najjar ,Sajad Abd Almajeed and Sajjad Mahdi Abbas ,Iraq

Abstract:
Liquidity risks represent current and expected threats that require the management of economic units to manage them by providing effective financial programs and strategies in the financing structure and making it responsive to liquidity challenges, which are indicators of the continuity of these economic units. The indicators provided by the cash flow statement represent convenient tools for analyzing liquidity risks and managing the financing needed to implement the objectives of economic units. Therefore, the objectives of the research are to analyze the relationship between the preparation of the cash flow statement in accordance with International Accounting Standard 7 and the indicators it provides and the management of current liquidity risks. A set of conclusions was reached, the most important of which is that the cash flow indicators prepared in accordance with International Accounting Standard 7 are appropriate tools for managing liquidity risks. A set of recommendations was reached, the most important of which is the management of economic units to take advantage of the indicators provided by the cash flow disclosure in managing current and expected liquidity risks.