Cash Flow Reporting Design Process Overview

This document is a guide focused on the cash flow reporting design process, particularly comparing the HFM (Hyperion Financial Management) to FCC (Financial Consolidation and Close) methodologies. It outlines the challenges associated with cash flow reporting, including issues related to initial design, sourcing balance sheet movements, and the complexity of cash versus non-cash elements. The guide details good practice design approaches for cash flow reporting, emphasizing the importance of detailed movement tables and the correct setup of accounting rules. It presents the HFM cash flow design process, which involves creating a cash flow hierarchy and applying rules for accurate reporting. The FCC cash flow design is also discussed, highlighting its reliance on IFRS statutory design and the need for understanding movement accounting. The document concludes with a process flow for validating balance sheet movements and producing cash flow values, ensuring that all cash and non-cash items are appropriately accounted for.