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IAS 7 Statement of Cash Flows

Statement of Cash Flows requires the provision of information about the historical changes in cash and cash equivalents during the period, classified as operating, investing and financing cash flows.

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IAS 7 requires an entity to provide a statement of cash flows for an accounting period, which analyses changes in cash and cash equivalents during a period.

It requires the cash flows of an entity to be analysed into operating, investing and financing activities. Cash flows from operating activities may be reported using either the direct or indirect method.

Current proposals

  • ED/2019/7 General Presentation and Disclosures

    ED/2019/7 General Presentation and Disclosures was issued in December 2019. This is the exposure draft of a proposed new standard that would replace IAS 1. Consequential amendments would be made to IAS 7 to:

    • Start the calculation of operating cash flows at operating profit when using the indirect method
    • Require most dividends and interest paid to be classified as cash flows from financing activities
    • Require most dividends and interest received to be classified as cash flows from investing activities
    • Present separately cash flows in respect of investments in integral and non-integral associates and joint ventures.

Recent amendments

All amendments issued up to and including the publication date of 1 January 2022 are included within the IFRS Foundation’s latest version of the issued standard: 2022 Issued Standard – IAS 7. Issued amendments may, therefore, have a mandatory effective date that is later than 1 January 2022 – see below for details.

Any amendments issued after 1 January 2022 will not be included in the IFRS Foundation’s 2022 Issued Standards but will be listed below and identified as such.

See the Corporate Reporting Faculty’s annual IFRS factsheets for a more detailed discussion of recent IFRS amendments.

  • Supplier Finance Arrangements

    Mandatory date: Annual periods beginning on or after 1 January 2024. Earlier application is permitted.

    The amendment introduces additional disclosure requirements about supplier finance arrangements to provide users with the information that they need to understand the effects of the arrangements on an entity's liabilities and cash flows, as well its exposure to liquidity risk.

  • IFRS 17 Insurance Contracts amendment to IAS 7

    Mandatory date: Annual periods beginning on or after 1 January 2023. Earlier application is permitted.

    IAS 7 is amended to delete cash receipts and cash payments of an insurance entity for premiums and claims, annuities and other policy benefits from the list of examples of cash flows from operating activities.

UK reduced disclosures – FRS 101

UK qualifying parents and subsidiaries can take advantage of FRS 101 Reduced Disclosure Framework. Our FRS 101 page gives more information on which entities qualify and the criteria to be met.

ICAEW factsheets and guides

The Corporate Reporting Faculty's annual IFRS factsheets provide a more detailed discussion of recent IFRS amendments.

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