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Cashflow - small company/group

Is this statement true?

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So I've rolled forward a set of group statements from PY and found the following statement in the policies: 

"The Group has taken advantage of the exemption in the Companies Act 2006 from the requirement to produce a cash flow statement on the grounds that it is a small group."

These group accounts are not applying Section 1A so where are they claiming this exemption from? I see no mention of cash flow anywhere in the Companies Act so to me, unless they chnage their framework, they should be disclosing a cash flow to be compliant with FRS 102, Section 7? 


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By paul.benny
11th Aug 2020 12:15

Small groups do not need to prepare group accounts.
FRS102 7.1B exempts small entities from preparing cashflow statements.

I think that makes the statement correct.

Thanks (2)
Replying to paul.benny:
By Shane123
11th Aug 2020 13:01

Thanks Paul, I think you are right, that paragraph does get small entities out of it ( I thought it might have referred to Section 1A, but it doesn't).

It's the clients choice to prepare these small group accounts accounts, not mine :)

Nevertheless the statement still isn't quite correct to me because it refers to the companies act and as I mentioned I can't see any references to a cashflow exemption within it.

Thanks (0)
Replying to Shane123:
By paul.benny
11th Aug 2020 13:30

Probably come from a Companies Act to prepare financial statements in accordance with applicable accounting standards rather than a specific exemption.

And of course a small group only has to file a balance sheet.

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