The Financial Reporting Lab is calling for investors and companies of all sizes to participate in a new project.
Following on from the Lab’s reports on risk, viability and dividend policy this project will explore best practice disclosures around the sources and uses of cash. It 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 scope of the project will develop in light of the contribution from those that participate. However, the project is likely to examine disclosures in annual reports and other public communications that help investors to understand:
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What is the make-up, nature and location of cash within a group?
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What is the availability of cash and what restrictions are in place concerning its access and use?
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What are the plans in place for the use of the cash?
The Lab expects to work and report on this project in two phases. The first phase (in Q1 2019) will look at current practice and consider the extent to which it meets investor needs. The second phase (in Q2 2019) will involve company interviews and joint roundtables to address identified gaps in the reporting of cash. We will aim to issue a report combining insight from both phases in Q3 2019.
Full press release
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