Cash Flow Statement - Financial Reporting Council
Staff Education Note 1: Cash Flow Statements
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Introduction
In this Staff Education Note, an illustrative cash flow statement is shown first under FRS 1
Cash flow statements (revised 1996) and then restated to comply with Section 7 Statement
of Cash Flows of FRS 102 The Financial Reporting Standard applicable in the UK and
Republic of Ireland.
In contrast to FRS 1, a cash flow statement prepared under FRS 102:
reconciles the movement in cash and cash equivalents, not just cash;
groups cash flows into fewer headings (ie cash flows from operating, investing and
financing activities);
reconciles profit to cash flows from operating activities starting from profit for the year
rather than operating profit; and
has fewer supporting notes.
This Staff Education Note has been prepared to illustrate the format of the cash flow
statement prepared in accordance with FRS 102 and assumes that there are no other
changes arising from the application of FRS 102. In a full set of financial statements,
comparatives would be provided.
There are no requirements in the Regulations
1
in respect of cash flow statements.
This Staff Education Note is written to highlight key areas of consideration when transitioning
to FRS 102 and is not designed to be exhaustive.
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