Cash Flow Statement Template (Ghana)

A Cash Flow Statement Template in Ghana records a formal statement of the particulars it certifies.

Section 125 of the Companies Act 2019 (Act 992) requires every company in Ghana to keep proper books of account and to prepare financial statements that give a true and fair view of the company's financial position and performance. For companies that apply International Financial Reporting Standards (IFRS) as adopted in Ghana by the Institute of Chartered Accountants, Ghana (ICAG), the preparation of a Cash Flow Statement is mandated by IAS 7 — Statement of Cash Flows. IAS 7 requires companies to present a statement of cash flows as an integral part of their complete set of financial statements for each period for which financial statements are presented.

The Cash Flow Statement Ghana is distinct from the Income Statement (Profit and Loss Account) and the Statement of Financial Position (Balance Sheet). The Income Statement shows revenues and expenses on an accruals basis and includes non-cash items such as depreciation, amortisation, and provisions. The Cash Flow Statement, by contrast, shows only actual cash movements and adjusts profit or loss to eliminate non-cash items. This distinction is important for Ghanaian businesses that carry out significant credit transactions or invest in long-term assets, where profit may be positive but cash position is strained.

The Institute of Chartered Accountants, Ghana (ICAG) — established under the Institute of Chartered Accountants (Ghana) Act 1963 (Act 170) — is the body responsible for setting accounting and auditing standards in Ghana. ICAG has adopted IFRS for listed companies and large entities, and the International Financial Reporting Standard for Small and Medium-sized Entities (IFRS for SMEs) for smaller businesses. Ghana Revenue Authority (GRA) also requires cash flow information as part of tax compliance submissions, particularly for companies seeking tax incentives under the Ghana Investment Promotion Centre Act 2013 (Act 865).

The Ghana Stock Exchange (GSE), regulated by the Securities and Exchange Commission (SEC) of Ghana under the Securities Industry Act 2016 (Act 929), requires listed companies to publish audited financial statements including the Cash Flow Statement within three months of the financial year end. For SMEs and sole proprietorships in Ghana, a simplified cash flow statement is a practical tool for bank lending applications — particularly for facilities from Ghana-based commercial banks licensed by the Bank of Ghana (BoG) — and for investor presentations to Ghana angel investor networks and the Ghana Venture Capital Trust Fund (VCTF) established under the Venture Capital Trust Fund Act 2004 (Act 680).

A Cash Flow Statement in Ghana is required or highly recommended in several contexts, ranging from statutory compliance to commercial transactions.

A Cash Flow Statement is required when a company incorporated under the Companies Act 2019 (Act 992) prepares its annual financial statements for filing with the Office of the Registrar of Companies (ORC). The ORC requires audited financial statements, including the Cash Flow Statement, to be filed annually as part of the annual return.

A Cash Flow Statement is needed when applying for a business loan or trade finance facility from a commercial bank licensed by the Bank of Ghana (BoG). Ghanaian banks require at least two to three years of audited or management accounts — including the cash flow statement — to assess the borrower's ability to service debt. Development Finance Institutions such as the Agricultural Development Bank (ADB) and Ghana Home Loans also require cash flow projections for project finance.

A Cash Flow Statement is required for companies seeking listing on the Ghana Stock Exchange (GSE) or the Ghana Alternative Market (GAX), where the Securities and Exchange Commission (SEC) of Ghana mandates submission of historical audited financial statements and prospective cash flow forecasts as part of the listing prospectus.

A Cash Flow Statement is needed when a Ghana company applies for incentives or registration with the Ghana Investment Promotion Centre (GIPC) under the Ghana Investment Promotion Centre Act 2013 (Act 865), which requires applicants to demonstrate financial viability through, among other documents, cash flow projections.

A Cash Flow Statement is required when preparing a business plan for funding from the Venture Capital Trust Fund (VCTF) under Act 680, Ghana Exim Bank, or impact investors active in Ghana's startup ecosystem in Accra's tech hub, the Ghana Innovation Hub.

A Cash Flow Statement is needed during due diligence in mergers, acquisitions, and business sale transactions governed by the Companies Act 2019 (Act 992), where the acquirer or investor needs to assess the target company's liquidity, working capital cycles, and capital expenditure patterns.

A valid Cash Flow Statement for a Ghana company under IAS 7 and the Companies Act 2019 (Act 992) must contain the following essential elements.

Company Information and Period: The full registered name of the company, its ORC registration number, the financial year end date, and the comparative period. The ORC registration number confirms incorporation under Act 992.

Operating Activities: Cash flows from operating activities reflect the cash generated or used by the company's principal revenue-generating activities. Under the indirect method permitted by IAS 7, this section starts with profit or loss before tax and adjusts for: depreciation and amortisation of property, plant and equipment and intangible assets; changes in trade receivables, inventories, and trade payables; provisions; and other non-cash items. Under the direct method, major classes of gross cash receipts and payments are presented. Ghanaian companies frequently use the indirect method.

Investing Activities: Cash flows from investing activities include cash paid to acquire property, plant and equipment, intangible assets, and financial investments, as well as proceeds from disposals. Ghanaian companies with significant capital expenditure — for example, in the extractive industry under the Minerals and Mining Act 2006 (Act 703) or the telecommunications sector regulated by the National Communications Authority (NCA) — will show substantial investing outflows.

Financing Activities: Cash flows from financing activities include proceeds from issuing shares or debentures, borrowings from banks (including BoG-licensed commercial banks), and repayments of loans and finance leases. Dividend payments to shareholders are classified as financing activities under IAS 7.

Cash and Cash Equivalents: The statement reconciles the opening and closing balances of cash and cash equivalents, including bank balances, short-term deposits maturing within three months, and mobile money balances held through MTN Mobile Money, AirtelTigo Money, or Vodafone Cash — widely used in Ghanaian business transactions.

Notes to the Cash Flow Statement: Disclosures of non-cash transactions (such as assets acquired under finance leases) and the components of cash and cash equivalents as at the reporting date.

Basis of Preparation: A statement confirming whether the financial statements are prepared under full IFRS or IFRS for SMEs, as adopted by ICAG, and whether the company is a reporting entity under the Securities Industry Act 2016 (Act 929).

Forms-legal.com provides this Cash Flow Statement template as a starting point for Ghana-compliant financial reporting. Ghanaian companies should engage a member of ICAG for professional preparation and audit of statutory financial statements.

Additional compliance elements for a Cash Flow Statement Template (Ghana) used in Ghana include: Under the Banks and Specialised Deposit-Taking Institutions Act 2016 (Act 930), the Bank of Ghana (BoG) regulates banking. The Securities Industry Act 2016 (Act 929) and Securities and Exchange Commission (SEC Ghana) regulate capital markets. Section 48 of the Bills of Exchange Act 1961 (Act 55) governs promissory notes. The Ghana Revenue Authority (GRA) administers tax obligations. The National Insurance Commission (NIC) regulates insurance. Forms-legal.com provides this template as a starting point for Ghana-compliant documentation.