The Standard of GRAP on Cash Flow Statements (GRAP 2) requires an entity to present information in its cash flow statement on cash in– and outflows on a gross basis. In limited circumstances, GRAP 2 allows for the cash in– and outflows to be presented on a net basis.

A new Frequently Asked Question (FAQ) explains how an agent applies the GRAP 2 requirements on cash in– and outflows in its financial statements when it controls the cash balance in the arrangement. The FAQ also explains how the agent should present cash in– and outflows that arise from a principal-agent arrangement in its cash flow statement. 

If you are interested in the FAQ, you can access it here [Frequently asked questions – ASB].

Disclaimer

The article has been prepared by the Secretariat of the ASB for information purposes only. It has not been reviewed, approved, or otherwise acted on by the Board.