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FRS 1 - Cash Flow Statements

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FRS 1 requires an entity to provide a cash flow statement for an accounting period, which analyses changes in cash during the period.

The cash flows are analysed into the following headings:

  • Operating activities
  • Returns on investment and servicing of finance
  • Taxation
  • Capital expenditure and financial investment
  • Acquisitions and disposals
  • Equity dividends paid
  • Management of liquid resources
  • Financing

Cash flows from operating activities may be reported using either the direct or indirect method