The International Accounting Standards Board (the Board), responsible for IFRS Standards,
has today issued amendments to IAS 7 Statement of Cash Flows.
The improvements to disclosures announced today require companies to provide information about changes in their financing liabilities and come as a response to requests from investors for information that helps them better understand changes in a company’s debt.
The amendments will help investors to evaluate changes in liabilities arising from financing activities, including changes from cash flows and non-cash changes (such as foreign exchange gains or losses).
The improvements are part of the Board’s Disclosure Initiative—a portfolio of projects aimed at improving the effectiveness of disclosures in financial reports.
Hans Hoogervorst, Chairman of the International Accounting Standards Board, said:
"These amendments respond to calls from investors for enhanced disclosures about changes in a company’s financing liabilities and are another step in our work to improve financial reporting disclosures.”
The IAS 7 amendments become mandatory for annual periods beginning on or after 1 January 2017.