RJ 360: preparing the cash flow statement, with a balancing example
RJ 360 requires medium-sized and large entities to prepare a cash flow statement. From financial year 2027, the guideline fixes where interest and dividends go and where the indirect method starts. Below are the rules and a fully worked statement that ties in with the balance sheet and profit and loss account.
The short answer
Medium-sized and large entities include a cash flow statement, divided into operating, investing and financing activities (RJ 360). From financial year 2027, interest and dividends received are shown under investing and interest and dividends paid under financing, and the indirect method starts from a subtotal in the profit and loss account, preferably operating result. Micro and small entities are exempt.
Updated 30 October 2026
Key facts
| Guideline | RJ 360 The cash flow statement; 2027 edition in force for financial years starting on or after 1 January 2027, earlier application recommended |
| Mandatory for | Medium-sized and large entities (RJ 360.104); small entities are exempt (RJk A1.301), as are micro entities |
| Exempt within a group | Wholly owned subsidiary of a parent with an equivalent consolidated cash flow statement, entities applying art. 2:403 DCC and pure intermediate holding companies |
| 2027 change | RJ-Uiting 2026-6 (24 April 2026, final and unchanged on 1 July 2026): fixed classification of interest and dividends, starting point of the indirect method |
Who must prepare a cash flow statement
Title 9 of Book 2 of the Dutch Civil Code does not mention the cash flow statement; the obligation comes from RJ 360.104, which counts the statement as part of the annual accounts (RJ 360.101). Medium-sized and large entities include it, with comparative figures (RJ 360.107). If there are consolidated annual accounts, you prepare the statement on a consolidated basis and a separate (company-only) statement is not needed (RJ 360.106).
No statement is needed for: an entity whose capital is wholly owned, directly or indirectly, by another entity that includes an equivalent statement in its consolidated annual accounts (state where it can be obtained), an entity that applies art. 2:403 DCC, and a pure intermediate holding company (RJ 360.104). For small entities, RJk A1.301 provides that the statement is not mandatory; if a small BV (private limited company) prepares one anyway, it forms part of the annual accounts. For why the obligation is not in the law, see cash flow statement.
Cash and the three types of cash flows
Cash and cash equivalents are cash and bank balances, deposits that are immediately available and investments that can be converted into cash without restrictions and without significant value risk, such as a money market fund (RJ 360.102). A bank overdraft is normally financing, but it belongs with cash and cash equivalents if it is repayable on demand and forms part of your cash management; the balance then often fluctuates between positive and negative (RJ 360.102a).
- Operating: receipts from customers, payments to suppliers and staff, operating lease payments and the profit tax paid or received, unless it clearly belongs to an investment or financing activity (RJ 360.209 and 360.214).
- Investing: purchase and sale of fixed assets and participating interests, loans granted and repaid. When you buy a subsidiary, you show the purchase price less its cash and cash equivalents, not its balance sheet items (RJ 360.217 and 360.219).
- Financing: issue and repurchase of shares, taking out and repaying loans, dividend paid, shown separately for shareholders and minority interests (RJ 360.220 and 360.221).
Anything that does not move cash is left out of the statement: revaluations, unrealised exchange differences, a machine under a finance lease at inception, an acquisition paid for with own shares. You disclose these in the notes (RJ 360.205 to 207). Under the 2027 edition, both the interest and the repayment part of a finance lease payment are shown under financing.
Direct or indirect, and where the indirect method starts
Both methods are permitted (RJ 360.210). The direct method shows receipts and payments; the Council recommends a reconciliation with operating result (RJ 360.211). The indirect method starts from a result and adjusts for items that involve no cash movement, for changes in inventories, trade receivables, trade payables, provisions and accruals, and for items that belong to investing or financing (RJ 360.212).
From the 2027 edition, that result must equal a subtotal in the profit and loss account under the Dutch Annual Accounts Formats Decree (Besluit modellen jaarrekening). Operating result is preferred; with the functional classification, the net turnover result is also allowed (RJ 360.212). Operating result is now defined: for the categorical classification, operating income less operating expenses; for the functional classification, the net turnover result plus other operating income (RJ 360.0).
Interest and dividends: 2025 and 2026 versus 2027
| Cash flow | Financial years 2025 and 2026 | From financial year 2027 (RJ 360.213) |
|---|---|---|
| Interest received | Operating or investing | Investing |
| Interest paid | Operating or financing; capitalised interest under investing | Financing, including interest capitalised under fixed assets |
| Dividends received | Operating or investing | Investing |
| Dividends paid | Preferably financing | Financing |
One exception remains: investing in financial assets or providing financing belongs to ordinary business activities, as with a property investor or a lessor with finance leases. In that case, interest received and paid and dividends received may be shown under operating, to the extent they arise from that activity (RJ 360.213a). If you switch to the new classification, you also restate the comparative figures and process the change as a change in accounting policy. Applying it before 2027 is recommended.
Case: a full cash flow statement that balances
Metaalbewerking Oostrand BV is medium-sized and prepares a cash flow statement for financial year 2027 using the indirect method. In 2027 it invested € 460.000 in machinery, sold a machine for its book value of € 20.000, repaid € 100.000 of the bank loan and paid out € 100.000 in dividends. All amounts are fictitious.
| Balance sheet | 31-12-2026 | 31-12-2027 |
|---|---|---|
| Tangible fixed assets | 1.500.000 | 1.620.000 |
| Inventories | 600.000 | 680.000 |
| Trade receivables | 750.000 | 830.000 |
| Cash and cash equivalents | 310.000 | 134.200 |
| Total assets | 3.160.000 | 3.264.200 |
| Equity | 1.620.000 | 1.756.200 |
| Warranty provision | 60.000 | 75.000 |
| Bank loan | 900.000 | 800.000 |
| Trade payables | 420.000 | 455.000 |
| Corporate income tax payable | 30.000 | 40.000 |
| Interest payable | 10.000 | 8.000 |
| Other liabilities | 120.000 | 130.000 |
| Total equity and liabilities | 3.160.000 | 3.264.200 |
Profit and loss account 2027: net turnover € 4.800.000, raw materials and consumables € 2.400.000, wages and social security contributions € 1.300.000, depreciation € 320.000 and other operating expenses € 400.000, giving an operating result of € 380.000. With € 5.000 interest income and € 85.000 interest expense, the result before tax is € 300.000; after € 63.800 corporate income tax, € 236.200 remains.
| Cash flow statement 2027 (indirect method) | € |
|---|---|
| Operating result | 380.000 |
| Depreciation | 320.000 |
| Increase in warranty provision | 15.000 |
| Increase in inventories | − 80.000 |
| Increase in trade receivables | − 80.000 |
| Increase in trade payables | 35.000 |
| Increase in other liabilities | 10.000 |
| Cash flow from business operations | 600.000 |
| Corporate income tax paid (30.000 + 63.800 − 40.000) | − 53.800 |
| Cash flow from operating activities | 546.200 |
| Investments in tangible fixed assets | − 460.000 |
| Sale of tangible fixed assets | 20.000 |
| Interest received | 5.000 |
| Cash flow from investing activities | − 435.000 |
| Repayment of bank loan | − 100.000 |
| Interest paid (10.000 + 85.000 − 8.000) | − 87.000 |
| Dividends paid | − 100.000 |
| Cash flow from financing activities | − 287.000 |
| Change in cash and cash equivalents | − 175.800 |
| Cash and cash equivalents 1 January 2027 | 310.000 |
| Cash and cash equivalents 31 December 2027 | 134.200 |
The checks: fixed assets move from € 1.500.000 + € 460.000 − € 320.000 − € 20.000 to € 1.620.000, equity from € 1.620.000 + € 236.200 − € 100.000 to € 1.756.200, and the closing balance of cash and cash equivalents equals the cash and cash equivalents on the balance sheet. Had Oostrand still classified interest as operating, as was allowed up to and including financial year 2026, operating cash flow would have been € 464.200, investing cash flow − € 440.000 and financing cash flow − € 200.000. The total stays at − € 175.800; only the split changes.
What belongs in the notes
Explain transactions that involve no cash movement, such as a finance lease at inception. If the definition of cash and cash equivalents differs from the cash and cash equivalents on the balance sheet, for example because of an overdraft or a money market fund, you give a reconciliation in figures (RJ 360.302). Special cash flows, such as expenditure on an expansion or receipts from factoring under operating, are explained further (RJ 360.304). Differences from the movement schedules of balance sheet items and a discussion in the management report are recommended (RJ 360.301 and 360.303).
By size class
| Class | Cash flow statement |
|---|---|
| Micro (assets ≤ € 450.000, net turnover ≤ € 900.000, < 10 employees) | Not mandatory |
| Small (assets ≤ € 7,5 mln, net turnover ≤ € 15 mln, < 50 employees) | Not mandatory (RJk A1.301); a voluntary statement forms part of the annual accounts |
| Medium-sized (assets ≤ € 25 mln, net turnover ≤ € 50 mln, < 250 employees) | Mandatory (RJ 360.104), unless a group exemption applies |
| Large | Mandatory, unless a group exemption applies |
Whether your entity must prepare a statement is also covered in must I prepare a cash flow statement; a blank format is available in the cash flow statement template.
Common mistakes
- The starting point of the indirect method differs from a subtotal in the profit and loss account.
- Showing interest expense instead of interest paid; the same goes for corporate income tax.
- From 2027, still showing interest paid under operating without relying on RJ 360.213a.
- Deriving the investment from the difference in book value and forgetting the depreciation.
- Including an acquired subsidiary with all its balance sheet items in the statement instead of the purchase price less its cash and cash equivalents.
How it works in Jaarrekening.io
The cash flow worksheet in Jaarrekening.io supports the direct and the indirect method, with operating result as the preferred starting point. For the indirect method, the app proposes the amounts from the balance sheet and profit and loss account; you review every line. From financial year 2027 the fixed classification of interest and dividends applies, and you can already choose it earlier; the exception in RJ 360.213a is a checkbox. For micro and small entities, the app marks the statement as not mandatory.
Sources
- RJ-Uiting 2026-6: draft guidelines following IFRS 18, including RJ 360 (rjnet.nl)
- Art. 2:361 DCC: what the law counts as part of the annual accounts (wetten.overheid.nl)
- Art. 2:403 DCC: group exemption
- Dutch Accounting Standards Board (Raad voor de Jaarverslaggeving): the Guidelines and the bundles (rjnet.nl)
- Dutch Accounting Standards Board: Ten geleides per annual edition, with the changes per financial year
Frequently asked questions
Where is interest paid shown in the cash flow statement from 2027?
Under financing activities, including interest capitalised under fixed assets (RJ 360.213, 2027 edition). Interest received and dividends received are shown under investing, dividends paid under financing. Only if investing or providing financing is part of ordinary business activities may interest and dividends received stay under operating (RJ 360.213a).
Which result does the indirect method start with?
From financial year 2027, a subtotal that also appears in the profit and loss account under the Dutch Annual Accounts Formats Decree (Besluit modellen jaarrekening). Operating result is preferred; with the functional classification, the net turnover result is also allowed (RJ 360.212). You then adjust for depreciation, provisions and working capital, and show tax paid, interest and dividends separately.
Must a small BV prepare a cash flow statement?
No. Small entities are exempt (RJk A1.301), as are micro entities. If a small BV prepares one anyway, it forms part of the annual accounts.
Do I have to restate the comparative figures if I switch to the 2027 classification?
Yes. The different classification of interest and dividends is a change in accounting policy; you restate the prior-year figures to the same classification so that both years are comparable. The total of the cash flows does not change, only the split across the three categories.
Is the cash flow statement part of the annual accounts?
According to RJ 360.101 it is, even though art. 2:361(1) DCC does not mention it. For medium-sized and large entities it is mandatory under RJ 360.104; the auditor audits it as well.
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