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Monday 22 September 2014

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IFRS Interpretations Committee

Statement of Cash Flows: Definitions of activities


 Issues considered but not included in the Annual Improvements to IFRS project

IAS 7 Statement of Cash Flows: Definitions of operating, investing and financing activities

This issue explores how the definitions of operating, investing and financing activities in paragraph 6 of IAS 7 Statement of Cash Flows can be made clearer so that greater consistency is achieved in the application of the primary principle identified by the IFRS Interpretations Committee behind the classification of cash flows.

The Interpretations Committee identified the primary principle behind the classification of cash flows in paragraph 11 of IAS 7 to be that cash flows should be classified in accordance with the nature of the activity in a manner that is most appropriate to the business of the entity.

Project stages

Deliberations

Expected completion date: May 2013