A. The definitions of assets and liabilities in the conceptual framework refer to generating future cash inflows (assets) and cash outflows (liabilities). Explain how a statement of cash flows is useful in projecting cash flows.

B. Transforming accounting to forecounting calls for more integration of accountancy with other disciplines. Discuss the disciplines that are useful in developing analytical skills to forecast future cash flows.

Several years ago, an article entitled From accounting to ‘forecounting’ (Cormier & Magnan, 2005) claimed that accounting would rely increasingly on forecasting future cashflow. Even though this article was very insightful, many questioned its premise. But after close observation of the standards developed by the International Accounting Standards Board (IASB) in recent years, particularly International Financial Reporting Standards (IFRS) related to financial instruments and revenue recognition, some firmly believe that accounting is transforming to ‘forecounting ‘.