Financial Reporting Lab calls for participants for a new project on the sources and uses of cash

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10 Dec, 2018

The Financial Reporting Lab (the Lab) is calling for participants for its next project which will seek to explore best practice disclosures around the sources and uses of cash.

The project which will follow on from the Lab's reports on risk and viability and dividend policy reporting. The project will consider how reporting on the location, nature and availability of cash within a group, as well as future uses of cash, can be presented in a way that is most useful to investor decision-making.

The project will develop from the contributions of participants but is most likely to examine disclosures in annual reports and other public communications that help investors to understand:

  • What is the make-up, nature and location of cash within a group?
  • What is the availability of cash and what restrictions are in place concerning its access and use?
  • What are the plans in place for the use of the cash?

The project is expected to include two phases:

  • Phase 1 (Q1 2019) - Consider current practice and how this meets the needs of investors.
  • Phase 2 (Q2 2019) - Company interviews and roundtables to address identified gaps in the reporting of cash.

A report is expected to be published in Q3, 2019 combining both phases.

Investors and companies are invited to register their interest by 15 January 2019.

Further information including the press release is available on the FRC website.

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