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| Old GAAP | FRS 102 | Further Comment On Differences |
| Cashflow Statement | Statement of Cashflows (S.7) | |
| Exemptions – small entities and subsidiary undertakings where 90% or more of voting rights are controlled within the group and consolidated financial statements publically available. | Publically available exemption Exemption – Entity included in publically available consolidated financial statements that give a true and fair view. This exemption is wider than old GAAP as it allows entities which are >50% owned to avail of this exemption. Small companies’ exemption – Republic of Ireland Until the enactment of the EU Directive 2013/34 by Ireland, all Republic of Ireland companies which are classed as small cannot claim exemption from the requirement to prepare a cash flow statement. UK Small companies as defined by the UK Companies Act provides an exemption from such companies preparing a cash flow statement. | On transition, an entity that was previously required to prepare a cash flow as it was less than 90% owned but is still a subsidiary (i.e. >50% owned or another entity has control of the composition of the board) and consolidated financial statements for the parent company is publicly available in which its results are consolidated then no cash flow statement is required to be prepared. On transition for Republic of Ireland companies who are not members of a group or who are members of a group but consolidated financial statements are not prepared by its parent company and who prepare financial statements under FRS 102 prior to the enactment of the EU Directive 2013/34 must prepare a cash flow statement. Under old GAAP this was not required. No differences on transition. |
| 9 Headings – Operating Activities, Dividends from Joint Ventures and Associates, Returns on investment and servicing of finance, Taxation, Capital Expenditure and financial investments, Acquisitions and disposals, Equity dividends paid, Management of liquid resources, Financing. | 3 Headings – Net Cash from Operating Activities, Cashflow from Investing Activities, Cashflow from Financing Activities. Operating Activities – cash receipts from sale of goods and rendering of services, royalties, fees, commissions and other revenue, cash payments to suppliers for goods and services, cash payments to and on behalf of employees, refunds of income tax. Investing activities – Cash payments to acquire and cash receipts in relation to the sale of PPE, intangible assets and other long term assets, cash payments or receipts in relation to acquisition or disposal of equity or debt instruments, cash advances and loans to and from other parties. Financing Activities – cash proceeds from issuing shares or other equity instruments, cash payments to redeem the entity’s shares, cash repayments of amounts borrowed, cash payments for the reduction of outstanding liabilities relating to a finance lease, cash proceeds from issuing debentures, loans, notes, bonds, mortgages or other short term or long term borrowings. | FRS 102 only provides three categories as per across whereas old GAAP had considerably more. Therefore on transition entities will need to revisit the cash flow statement to ascertain where the cash flows fall into under FRS 102. The layout follows the layout under IFRS. See example attached for an illustration of the type of cash flow required under FRS 102 (Example 10 – Statement Of Cashflows). |
| Note reconciling the movement of cash in the period with the movement in net debt required. | Reconciliation of net debt not required. | No requirement to prepare a reconciliation of net debt under FRS 102 which was required under old GAAP, however entities can still choose to provide this. |
| Cash flow show movement in cash and on demand deposits. | Cash flow shows the movement of cash and cash equivalent. Cash equivalents are short term, highly liquid investments that can be readily turned into cash and have short term maturity i.e. three months or less from the date of investment. Therefore, more items will be included within cash under FRS 102. | Under old GAAP cash equivalents were categorised under liquid resources and not as cash. Therefore on transition entities will need to reclassify such balances on the cash flow statement such that these are shown as cash and cash equivalents. It will therefore require the previous cash flow prepared to be amended. |
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