Statement of Cash Flows and Related Matters

The IASB met on 20 May 2025 to discuss:

• the topics to include in the project plan;
• the topics to exclude from the project plan;
• the project approach for topics related to financial institutions; and
• a draft timeline for work on the project.

The IASB decided that it will assess potential ways to improve:

1. the disaggregation of cash flow information in the financial statements; 
2. the reporting of information about non-cash transactions in the financial statements; 
3. the transparency of information communicated about cash flow measures not specified in IFRS Accounting Standards; 
4. the consistent application of requirements to classify cash flows as operating, investing or financing; and
5. the consistent application of the definition of ‘cash equivalents’. 

All 14 IASB members agreed with this decision.

The IASB decided it will not:

1. aim to redefine the operating, investing and financing categories;
2. aim to align the classification of cash flows in the statement of cash flows with the classification of related income and expenses in the statement of profit or loss, which is set out in IFRS 18 Presentation and Disclosure in Financial Statements;
3. define ‘growth and maintenance capital expenditures’;
4. define the measures ‘free cash flows’ or ‘net debt’;
5. expand the definition of ‘cash and cash equivalents’;
6. develop new requirements for cash flow information by segment;
7. develop specific requirements for offsetting cash flows;
8. develop alternatives to a statement of cash flows; or
9. amend the requirement in IAS 7 Statement of Cash Flows for an entity to present operating activities using the direct or the indirect method.

All 14 IASB members agreed with this decision.

The IASB decided it will approach the statement of cash flows for financial institutions by considering:

1. improvements to the statement of cash flows generally before deciding how any changes might apply to the requirements for financial institutions;
2. exemptions for financial institutions from some or all of the requirements for presenting a statement of cash flows; and
3. any presentation or supplementary disclosure requirements specific to financial institutions that might enhance the usefulness of information about cash flows for such entities.

All 14 IASB members agreed with this decision.