In the final part of our series on FRS 102 (2018), James Waller CA, technical writer at Croner-i, explains the treatment of a net debt reconciliation where a company, LLP or charity, includes a cash flow statement
This article considers the requirement to include a reconciliation of net debt for companies as well as noting the key differences for limited liability partnerships (LLPs) and charities. The FRS 102 (2018) triennial review applies from accounting periods commencing on or after 1 January 2019 although early adoption is permitted if all of the changes are applied at the same time.
Requirements and reasoning
The triennial review added paragraph 7.22 to FRS 102 which requires entities that include a statement of cash flows (whether required or optional) to also include a reconciliation of net debt.
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