FRS 1(Cash Flow Statements) & FRS 3 (Reporting Financial Performance)

federal semiofficial 1: money time period STATEMENTS AMENDMENT OF federal official 1 CASH FLOW STATEMENT INTRODUCTION interchange menstruate statements are mean to complement the former(a)wise native financial statements. While info ab come to the fore w ampereum and new(prenominal) gains or losses is ostensibly all important(predicate) in assessing the boost of a company, it is equally important to gain an sense of how those gains and losses, and other transactions of the company, have been reflected in the property settles (Chopping & Stephens 2003). federal official 1 (revised) Cash conflate statements came out in 1996 as a replacement to federal official 1 Cash guide statement. The stop of FRS 1 (revised) lends itself to a potential examination - the reasons for the concluding payment of the revised standard. REASONS FOR REVISING FRS 1 FRED 10 interchange flow statements, the Financial Reporting motion-picture show Draft that preceded FRS 1 (revised), outlined several comments of FRS 1 (Business parentage autopsy 1996): 1. The main criticism was that the rendering of coin and exchange equivalents was too restrictive. Cash was non a problem, but because exchequer heed vary among entities, the commentary of exchange equivalents had presented difficulty. 2. The second criticism of FRS 1 was that the final balance on the cash flow statement was of brusque relevance in assessing the fluidity of the entity.

By focusing on the movement in cash and cash equivalents, other balances such as movements on loans and long-run investments were ignored. 3. on that point was to a fault a problem with the headland investing activities on the formula of the cash flow statement. Investing activities included the cash effects of the corrupt and sale of both long-term investments such as heady assets, and short-run investments such as short-run deposits. 4. Finally, there was a superior general concern that the cash flow statement was not reflecting the much important or germane(predicate) aspects of cash... If you want to spoil a full essay, order it on our website: Ordercustompaper.com

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