Amendments to IAS 7

BACKGROUND

The Accounting Standards Board (AcSB) is participating in the International Accounting Standards Board’s (IASB) project to amend International Accounting Standard (IAS) 7 Statement of Cash Flows as part of its initiative to improve disclosures in financial statements.

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The objectives of this project are to improve:

  • the information provided to users of financial statements about an entity’s financing activities, excluding equity items; and
  • disclosures that help users of financial statements to understand the liquidity of an entity.

The AcSB’s due process includes ensuring that Canadian entities’ financial reporting needs are considered by the IASB and issuing the AcSB’s own exposure draft on each IASB proposal.  Subject to the responses to the AcSB’s exposure draft on whether the IASB’s proposals are appropriate for application in Canada, the AcSB expects that the amendments will be incorporated into Canadian GAAP in accordance with the AcSB’s strategy of adopting IFRSs for publicly accountable enterprises.

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PROJECT NEWS

Final Amendments – Disclosure Initiative (Amendments to IAS 7)
February 2, 2016.  The IASB has issued narrow-scope amendments to IAS 7 Statement of Cash Flows to require companies to disclose information about changes in their financing liabilities. The amendments are effective for annual periods beginning on or after January 1, 2017 with earlier application permitted.

AcSB Response – Disclosure Initiative (Proposed amendments to IAS 7)
On April 17, 2015, the AcSB submitted a comment letter responding to the IASB’s Exposure Draft issued in December 2014. The letter expresses support for the proposed amendments as an initial step forward.  The letter also expresses concern that additional liquidity disclosures are being added on an ad hoc basis and encourages the IASB to consider these disclosures more holistically. Read the AcSB letter posted by the IASB.

AcSB Exposure Draft – Disclosure Initiative (Proposed amendments to IAS 7)
January 27, 2015. The AcSB has issued an Exposure Draft that corresponds to the IASB’s Exposure Draft on this topic. Canadian stakeholders are encouraged to submit their comments, on the form provided, by April 17, 2015.

IASB Exposure Draft – Disclosure Initiative (Proposed amendments to IAS 7)
December 22, 2014. The IASB has issued an Exposure Draft proposing amendments to IAS 7 Statement of Cash Flows. Canadian stakeholders are encouraged to submit their comments to the IASB by April 17, 2015.

 

Disclaimer: This project summary has been prepared for information purposes only. Decisions reported are tentative and reflect only the current status of discussions on this project, which may change after further Board deliberations. Decisions to publish Handbook material are final only after a formal ballot process.