Route 102 – One man’s year-long journey……Day Ten

  • By Jeremy Williams
  • 16 January 2015 00:00

To mark this momentous year for UK GAAP, I'm embarking on a mission to work my way through FRS 102, reading a portion on each working day of 2015 and writing a short blog entry on my thoughts and musings (be they few or many).

It's Friday and the weekend seems more inviting than a fresh new calculator out of its box.

DAY TEN (16 Jan)

We're still in section 7, looking at the cash flow statement of cash flows. As I noted yesterday, there are now three headings for cash (and cash equivalent) flows: operating, investing and financing activities. Section 7 helpfully explains (with a number of examples) what goes in each, so there's not much left to guess. Some flows can be reported on a net basis (though I confess that every time I read 7.10A(b) that describes items in which 'the turnover is quick, the amounts are large, and the maturities are short', I always expect it to continue,'and the beer is cold'.)

There are some extra disclosures in 7.21 - a commentary from management about any balances of cash (and equivalents) that are unavailable for use - because of foreign exchange controls, legal restrictions or because they're being cleaned for the next half an hour.

What about the other supplementary notes in FRS 1 (such as the movement in net funds/debt)? They don't appear, though the 'operating activities' section will typically use the 'indirect' method of starting with profit and adjusting from there.

Have a super weekend. I'll spend mine knitting a lovely cover for my copy of FRS 102. Back on Monday.

P.S. If you missed yesterday's instalment click here

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