ABSTRACT
Requirement is dependent on the size of the charity, i.e. the need to refer to FRS 1. Attention should also be paid to the governing instrument of the charity as this may require a cashflow statement.
History
A cashflow statement may be required for some charities in order to conform to statements of standard accounting practice (SSAP) and financial reporting standards (FRS). In accordance with SSAP 10 ‘statements of source and application of funds’, the 1988 SORP 2 recommended that charities should prepare a source and application of funds statement. However, SSAP 10 had at this stage already suffered from many criticisms and between 1975 and 1989 it was twice considered for revision, but no changes were made.
