Statement of Cash Flows and Related Matters

The IASB met on 22 July 2026 to discuss:

• improvements to disclosures about non-cash transactions from investing and financing activities (non-cash transactions); and
• planned work and areas of focus on the statement of cash flows for financial institutions.

Non-cash transactions (Agenda Paper 20A)

The IASB tentatively decided to propose in a future exposure draft:

1. adding application guidance to clarify the non-cash transactions within the scope of paragraphs 43–44 of IAS 7 Statement of Cash Flows. Specifically, the guidance would:
   1. explain that to identify non-cash transactions, an entity identifies non-cash additions and disposals of assets, and non-cash issuances and redemptions of liabilities and equity items, for which cash flows would be classified as investing or financing activities.
   2. include examples of non-cash changes in the items described in (i) that are within the scope of the disclosure requirements and examples that are outside that scope.
      
      Eleven of 12 IASB members agreed with this decision.
       
2. adding a disclosure objective that would require an entity to disclose information about non-cash transactions that enables investors to understand changes in the entity’s net assets and its ability to generate future cash flows.
   
   All 12 IASB members agreed with this decision.
   
   
3. requiring an entity to disclose information about non-cash transactions in a single note.
   
   Eleven of 12 IASB members agreed with this decision.
   
   
4. adding requirements to paragraphs 43–44 of IAS 7 for an entity to disclose:
   1. a list of non-cash transactions and applicable cross-references that identify the location of any related information in other notes.
      
      Eleven of 12 IASB members agreed with this decision.
      
      
   2. the transaction amount—that is, the consideration attributed to the transaction in accordance with IFRS Accounting Standards. The entity would also be required to disclose information about the related investing, financing and operating activities from which the transaction arises. Operating activities would only be included in the scope of these proposed requirements if involved in a transaction that involves both operating and investing or financing.
      
      Eleven of 12 IASB members agreed with this decision.
      
      
   3. the effect of non-cash transactions on assets, liabilities and equity alongside the amounts of similar cash transactions. The entity would be required to add these amounts to show their combined effect on its activities in the statement of cash flows.
      
      Ten of 12 IASB members agreed with this decision.
       
5. requiring an entity to provide the information described in (d) in a structured format, like a table.
   
   Eleven of 12 IASB members agreed with this decision.
   
   
6. requiring an entity to explain the nature of the information available in the related notes identified in cross-references disclosed as described in (d)(i) if the transaction amounts are not separately identifiable in those notes.
   
   Ten of 12 IASB members agreed with this decision.

Approach to the statement of cash flows for financial institutions (Agenda Paper 20B)

The IASB discussed the plan for future work on the statement of cash flows for financial institutions. The plan includes prioritising research and stakeholder engagement on:

1. defining the scope of entities that would apply any potential changes to IAS 7 arising from this work; and
2. considering possible exemptions for financial institutions from some or all of the requirements for presenting a statement of cash flows.

The IASB was not asked to make any decisions.