Skip to main content

Finance record 2019/20 - Table 3: Consolidated statement of cash flows

Version 1.0 Produced 2020-12-16

Table 3 - Consolidated statement of cash flows

Table 3 is cash flow statement that shows how changes in the statement in financial position and statement of comprehensive income affect cash and cash equivalents, and breaks the analysis down to operating, investing, and financing activities.

Items are added or subtracted as appropriate to determine the increase or decrease of cash and cash equivalents.

Head 1 (Cashflow from operating activities)

Sub head 1a shows surplus for the year and is automatically populated from Table 1 UK, head 9.

Head 2 (Adjustment for non-cash items)

Head 2 shows adjustments for all non-cash items to determine cash flows from operating activities before taxation.

Sub head 2a should show depreciation of tangible assets and should be added.

Sub head 2b should show amortisation of intangible assets and should be added. Amortisation of goodwill should be included in sub head 2d and not here.

Sub head 2c should show release of negative goodwill from asset acquisition and should be subtracted.

Sub head 2d should include amortisation of goodwill and should added.

Sub head 2e shows (gain)/loss on investment and investment property and is automatically populated from Table 1 Head 5. Loss is automatically populated as added and gain is automatically populated as subtracted.

Sub head 2f should show the change in the value of stocks over prior financial year end. At balance sheet date, if the value of stocks has increased from prior year end then such change value should be subtracted. If the value of stocks has decreased from prior year end then such change value should be added.

Sub head 2g should show the change in the value of debtors over prior financial year end. At balance sheet date, if the value of debtors has increased from prior year end then such change value should be subtracted. If the value of debtors has decreased from prior year then such change value should be added.

Sub head 2h should show the change in the value of creditors over prior year end. At balance sheet date, if the value of creditors has increased from prior year end then such change value should be added. If the value of creditors has decreased from prior year, then such change value should be subtracted.

Sub head 2i should show the change in the value of pension provisions over prior year end. At balance sheet date, if the value of pensions has increased from prior year end then such change value should be added. If the value of pensions has decreased from prior year, then such change value should be subtracted.

Sub head 2j should show the change in the value of other provisions over prior year end. At balance sheet date, if the value of other provisions has increased from prior year end then such change value should be added. If the value of other provisions has decreased from prior year, then such change value should be subtracted.

Sub head 2k should show the value of donated equipment (not received as cash) and should be subtracted.

Sub head 2l is the share of operating surplus or deficit in a joint venture and is automatically populated from Table 1, Head 7. Gain is automatically shown as subtracted and loss is automatically populated as added.

Sub head 2m is the share of operating surplus or deficit in a associate and is automatically populated from Table 1, Head 8. Gain is automatically shown as subtracted and loss is automatically populated as added.

Sub head 2n should show any other non- cash adjustments not included in sub heads 2a to 2m.

Head 3 (Cashflows from investing or financing activities)

Head 3 shows adjustments for all investing and financing activities to determine cash flows from operating activities before taxation.

Sub head 3a should show income received from investments and should be subtracted. Endowment income should be shown in sub head 3c and not here.

Sub head 3b should show interest payable on borrowings and should be added. This should include charges payable on finance leases and service concessions.

Sub head 3c should include endowment income and should be subtracted.

Sub head 3d should include gain or loss made on disposal of tangible or intangible assets. Gains should be subtracted and losses should be added.

Sub head 3e should show capital grant received and should be subtracted.

Head 4 (Cash flows from operating activities before taxation)

Head 4 is cashflows from operating activities before taxation and is automatically populated. Head 4 and is calculated as the sum of sub heads 1a, 2a to 2n, and 3a to 3e.

Head 5 (Taxation)

Head 5 should show all taxation paid and should be subtracted.

Head 6 (Net cashflows from operating activities)

Head 6 is the net cashflows from operating activities and is automatically populated. Head 6 is the sum of Heads 4 and 5.

Head 7 (Cashflows from investing activities)

Head 7 show cashflows from investing activities.

Sub head 7a should show cash receipts from sale of tangible assets and should be added. This is different value from sub head 3d which should show the gain or loss from sale of tangible assets.

Sub head 7b should show cash receipts from sale of intangible assets and should be added. This is a different value from sub head 3d which should show the gain or loss from sale of intangible assets.

Sub head 7c should show capital grants received and should be added.

Sub head 7d should include receipts from sale of non-current investments. This relates to disposal of non-current investments shown in Table 2, sub head 1g. This should be added.

Sub head 7e should include withdrawals made which would reduce investment holdings in the bank and should be subtracted. New investments made in the year should be separately shown in sub head 7j. Withdrawals and deposits must not be netted off.

Sub head 7f should show investment income received and should be added.

Sub head 7g should show payments made to acquire tangible assets and should be subtracted. These are tangible assets that has been included in Table 2 sub head 1e.

Sub head 7h should show payments made to acquire intangible assets and should be subtracted. These are intangible assets that been included in Table 2 sub head 1a.

Sub head 7i should show payments made to acquire non-current asset investments and should be subtracted. These non-current investment acquisitions should have been included in Table 2 subhead 1g.

Sub head 7j should show new deposits made to increase your cash holdings and should be added. Withdrawals from the bank should be shown in sub head 7e. Deposits and withdrawals should not be netted off.

Sub head 7k should show any cash received or payments made for investing activities and not included in sub heads 7a to 7j.

Sub head 7l is the total cashflows from investing activities and is automatically populated. Sub head 7k is calculated as the sum of 7a to 7k.

Head 8 (Cash flows from financing activities)

Head 8 shows cashflows from financing activities.

Sub head 8a should show interest paid on borrowings and must be subtracted. This sub head must not include finance charges on finance lease and service concessions which must be shown in sub head 8b.

Sub head 8b should show the interest element of finance lease and service concessions paid and must be subtracted.

Sub head 8c should show new endowments received and is added.

Sub head 8d should show endowment payments made and should be subtracted.

Sub head 8e should show new secured loans received and should be added.

Sub head 8f should show new unsecured loans received and should be added.

Sub head 8g should show repayments made of amounts borrowed and should be subtracted.

Sub head 8h should show the payments made of the capital element of finance leases or service concessions and should be subtracted.

Sub head 8i should show the cash used to pay dividends to shareholders and should be subtracted. Sub head 8i is applicable to those providers where dividends are distributed to directors.

Sub head 8j should show other receipts and payments made relating to financing activities and not covered in sub heads 8a to 8i.

Sub head 8k is the total of cashflows from financing activities and is automatically populated. Sub head 8k is calculated as the sum of sub heads 8a to 8j.

Head 9 (Decrease/(Increase) in cash and cash equivalents for the year)

Head 9 is automatically populated and is calculated as the sum of Head 6 and sub heads 7l and 8k.

Head 10 (Cash and cash equivalents at the beginning of the year)

Head 10 should show balance of cash and cash equivalents at the beginning of the year. This is the same value shown at balance sheet date last year.

Head 11 (Exchange (gains)/losses on cash and cash equivalents)

Head 11 should show currency exchange differences arising on foreign exchange transactions.

Head 12 (Cash and cash equivalents at the end of the year)

Head 12 should show balance of cash and cash equivalents at balance sheet date this year.

Need help?

Contact Liaison by email or on +44 (0)1242 388 531.