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Saturday 22 November 2014

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IFRS Interpretations Committee

Statement of Cash Flows: Classification of cash payments for deferred and contingent consideration


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

IAS 7 Statement of Cash Flows-Classification of cash payments for deferred and contingent consideration

In June 2011, the Interpretations Committee received a request for guidance on the classification of cash payments for deferred and contingent considerations under IAS 7 Statement of Cash Flows. The submitter asked the Committee to clarify:

  1. whether the settlement of contingent consideration should be classified as an operating, an investing or a financing activity in the statement of cash flows; and
  2. whether the subsequent settlement of deferred consideration for a business combination should be classified as an investing or a financing activity in the statement of cash flows.

Project stages

Deliberations

Issues rejected