Experimental Evidence for explaining future cash flows using a new Classification of Components of accruals and cash flows operating

Cash flow forecasting is an important component of economic decision-making, especially in the area of investment and validation.The purpose of this study is to investigate the relationship between the components of accruals and future cash flows of listed companies in Tehran Stock Exchange. And seeks to answer the question of Does the categorisation of accruals into working capital accruals, non-current operating accruals, financing accruals components and components of operating cash flows enhance the ability of total accruals – and thus of earnings – to explain future CFO? For this purpose, the data of 137 companies listed in the Tehran Stock Exchange during the period of 2010-2017 were investigated.Empirical evidence suggests that the components of working capital accruals (current operating assets and liabilities) and the component of accruals assets of non-current operating and financing play an important role in explaining future cash flows. In contrast, the liability component of an non-current operating and financial item does not have the ability to predict future cash flows. in this study, it was noticed that accruals of assets compared with debt accrual and variables of operating cash flows compared with accrual components were more predictive for future cash flows.