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Friday 28 November 2014

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Classification of expenditures in the statement of cash flows

Statement of Cash Flows: Classification of expenditures in the statement of cash flows


 Issues considered but not included in annual improvements (Issues rejected)

IAS 7 Statement of Cash Flows: Classification of expenditures in the statement of cash flows

In connection with its deliberations on IAS 7 on the definitions of operating, investing and financing activities (refer to IFRIC Update of March 2013) the Interpretations Committee proposes the IASB to delete the guidance in paragraph 16 of IAS 7 that "only expenditures that result in a recognised asset in the statement of financial position are eligible for classification as investing activities".

The Interpretations Committee noted that this guidance in paragraph 16 had originally been added to IAS 7 as an annual improvement ("Improvements to IFRS" April 2009) following a recommendation by the Interpretations Committee at that time.

Project stages

Deliberations

Estimated completion date: Q3 2013 (Tentative date for publication of the ED AIP 2012-2014)