Cashflow statement improvements targeted by watchdog

Cashflow statement improvements targeted by watchdog

Improvements to cashflow statements are being targeted in a consultation launched by the Financial Reporting Council (FRC)

IMPROVEMENTS to cashflow statements are being targeted in a consultation launched by the Financial Reporting Council (FRC).

The paper aims to identify possible “evolutionary improvements” to the statement of cashflows as currently required by IAS 7.

Paul George, executive director for corporate governance and reporting at the FRC, said: “The paper suggests several ideas for improving the transparency and consistency of the statement, while providing the company’s own perspective on the management of liquid resources.”

Companies that prepare their financial statements in accordance with International Financial Reporting Standards (IFRS) are required to follow the International Accounting Standard (IAS) 7. The basis of this standard is more than 20 years old, with the FRC highlighting the need for modernisation and improvements.

Some topics that are being addressed include: issues that arise in the context of financial institutions; and the reporting of restricted cash and the reconciliation of net debt.

The FRC’s Financial Reporting Lab has published a number of reports that are relevant to the issues discussed in this paper including; operating and investing cash flows (November 2012), net debt reconciliations (September 2012), and debt terms and maturity tables (November 2012).

George concluded: “The paper and the responses to it will make an important contribution to the IASB’s project on primary financial statements.”

The deadline for responses to the consultation is 28 February 2017.

Whitepaper

The Future of Finance is in the CFO's Hands

Business The Future of Finance is in the CFO's Hands

4m
Save a Week a Month Consolidating Accounts

Accounting Software Save a Week a Month Consolidating Accounts

5m
Mitigating Risk Through Internal Control

Legal Mitigating Risk Through Internal Control

6m
Could tax season have run more efficiently?

Corporate Tax Could tax season have run more efficiently?

6m

Related Articles

IFRS to bring significant changes for lessee accounting

Accounting Standards IFRS to bring significant changes for lessee accounting

4w Dom Longley, lead consultant for accounting solutions for Smith & Williamson
FRC audit inspection finds no improvement on last year

Accounting Firms FRC audit inspection finds no improvement on last year

1m Chris Jewers
Sustainable cost accounting - The reality of the climate crisis requires nothing less

Accounting Standards Sustainable cost accounting - The reality of the climate crisis requires nothing less

2m Richard Murphy
Feedback led to change in FRS102 on Director’s Loans

Accounting Standards Feedback led to change in FRS102 on Director’s Loans

2m Tom Lemmon
IFRS 17 is an “opportunity” for accountants

Accounting Standards IFRS 17 is an “opportunity” for accountants

2m Tom Lemmon
Moody’s Analytics enhances accounting and reinsurance capabilities of RiskIntegrity IFRS 17 solution

Accounting Standards Moody’s Analytics enhances accounting and reinsurance capabilities of RiskIntegrity IFRS 17 solution

2m Tom Lemmon
What will IFRS 16 mean for 2019’s reporting season?

Accounting Standards What will IFRS 16 mean for 2019’s reporting season?

3m John Kuett, Vice president of European Lease Accounting at Lease Accelerator
Kingman has missed the point

Accounting Standards Kingman has missed the point

8m Richard Murphy