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Interpretation and Application of UK GAAP: For Accounting Periods Commencing On or After 1 January 2015
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Interpretation and Application of UK GAAP: For Accounting Periods Commencing On or After 1 January 2015

by Steven Collings
April 2015
Intermediate to advanced content levelIntermediate to advanced
546 pages
17h 36m
English
Wiley
Content preview from Interpretation and Application of UK GAAP: For Accounting Periods Commencing On or After 1 January 2015

Chapter 22Statement of Cash Flows

  1. Introduction
  2. Objective of the Statement of Cash Flows
  3. Format of the Statement of Cash Flows
  4. Dividends and Interest
  5. Material Non-Cash Transactions
  6. Small Companies
  7. Consolidated Financial Statements
  8. Disclosure Issues

Introduction

The statement of cash flows is one of the primary financial statements and forms part of a complete set of general purpose financial statements. Therefore, the statement of cash flows is given the same levels of prominence as that of the statement of comprehensive income/income statement (profit and loss account), the statement of financial position (balance sheet) and the statement of changes in equity.

Section 7 Statement of Cash Flows deals with the issues relating to the statement of cash flows and whilst companies adopting the small companies regime in the UK have a choice as to whether to present a statement of cash flows or not (small company financial reporting encourages but does not mandate small companies from presenting a statement of cash flows), there is no option in FRS 102 for companies to present a statement of cash flows. The exception is where an entity adopts the provisions in FRS 101 Reduced Disclosure Framework. The result of this is that many smaller entities that do not choose to report under the small companies regime will be preparing a cash flow statement for the first time under FRS 102.

The following entities are not covered under the scope of Section 7:

  • Mutual life assurance companies. ...
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Publisher Resources

ISBN: 9781118819258Purchase book