The controller of SFB, Inc , asked whether or not to include cash flow per share data in the company's financial statements. Which section of the authoritative guidance best addresses the presentation of cash flow per share data in the financial statements

Financial Accounting Standards No. 95 (SFAS 95), Statement of Cash Flows, explicitly prohibits companies from reporting an amount of cash flow per share in the financial statements (FASB 2007, FAS95-9). Moreover, as per the guidelines issued by SEC

Explanation:

Cash flow per share means cash flow from each share held in the company. Although cash flow per share is a good measure of a company's ability to generate cash flow during the reporting period, no company recommends that it be specifically reflected in the company's financial statements. In addition, the FASB prohibits disclosure of cash flow per share, especially in the company's financial sector, for fear that it may undermine the importance of each share measure. In addition, the SEC issued ASR 142 "Reporting Cash Flow and Other Related Data" in March 1973 (SEC, 1976). The use of "cash per share" in prospectus statements and the "President's Letter" or "President's Letter" section of the Annual Report show a lack of credibility for traditional financial statements, which is a measure of business activity.  Differences in the form and intent of such data can be confusing "(SEC 1976, 250). Reporting the amount of cash flows per share in the statement and financial statements (FASB 2007, FAS95-9) Provides information clearly to companies, in addition to the guidelines issued by the SEC. In the Prohibition Code, 230–10–45–3 states continued, “Financial statements do not report cash flow per share. Since each share volume can be reported, cash flow or any part of it is not a substitute for net income.