We comment on the on the FRC's Discussion Paper: 'Improving the Statement of Cash Flows'

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03 Apr, 2017

We have published our comment letter on the Financial Reporting Council's (FRC's) Discussion Paper: 'Improving the Statement of Cash Flows'.

We agree with many of the suggestions made in the paper to improve the statement of cash flows. We believe that the focus should be on improving classification and we support introducing more classification headings. However, we believe that less emphasis should be afforded to suggestions made where the existing principles and rules in IAS 7 Statement of Cash Flows are operating successfully in practice and are not considered to be significant problem areas such as net presentation and where the reconciliation of operating activities should be presented.

We also consider that several of suggestions could be enhanced through further outreach to determine whether the issue raised is an important one for users of financial statements and to strike the appropriate balance between costs and benefits.   

Further comments and a full response to all questions raised in the invitation to comment are contained within the full comment letter.

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