Thesis (MBA)--Stellenbosch University, 2000. / The investing public seeks to have knowledge on the future and anticipated enterprise performance. The starting point for gathering such information is presented in the enterprise financial statements. Secondary data presented by the Business School of the University of Stellenbosch was used. The study focused on finding out the magnitude of reporting cash flows from operating activities using the indirect or direct methods. The study also checked the frequency of reporting value - added statements, and took a forecast view on what the reporting nature is expected to look like in the next financial year-end. The database used in the study included 655 listed and delisted industrial companies in the Johannesburg Stock Exchangeover the ten-year period starting from January 1990 through to December 1999. It is noted that the South African Institute of Chartered Accountants, as stated in Statement AC 118, encourages enterprises to report cash flows from operating activities using the direct method. This is because the direct method provides information which may be useful in estimating future cash flows and which is not available under the indirect method. The study noted the rate at which newly listed enterprises report their initial cash flow statements, and the rate at which enterprises listed before 1996 are changing from reporting using the indirect method to the direct method. The results showed that at present South African enterprises are reporting cash flows from operating activities at a higher rate that in other notable Western Countries subscribing to the doctrines of the International Accounting Standards Committee (IASC). The number of enterprises presenting value - added statements has shown an increase, though reporting value - added statements is not yet statutory. For the forecasting exercise part of the study, Brown's linear double exponential smoothing technique was applied.