Which three elements must be enabled for indirect cash flow statement planning?

For planning an indirect cash flow statement, it is essential to enable the cash flow statement itself. This element is fundamental because the indirect cash flow statement format relies on information derived from the cash flow statement to prepare a comprehensive view of cash inflows and outflows, as well as the adjustments needed for non-cash expenses and changes in working capital.

The indirect cash flow statement starts with net income, which is sourced from the income statement, and then adjusts for non-operating items. Thus, while the income statement and its components are indeed relevant in the planning process, enabling the cash flow statement is the primary requirement. This allows for the structuring of cash flows from operating activities, investing activities, and financing activities, providing a complete picture of how cash is generated and used within the organization.

Enabling expense and revenue, while valuable for generating reports and understanding financial performance, does not directly establish the core necessary framework that the cash flow statement provides for proper indirect cash flow statement planning. Thus, the cash flow statement itself is the key element needed for this specific planning activity.