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.
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.