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IAS 7 Statement of Cash Flows (previously Cash Flow Statements)

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.

Published December 1992. Effective 1 January 1994.

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*UK qualifying parents and subsidiaries can take advantage of FRS 101 Reduced Disclosure Framework. Find out more on which entities qualify and the criteria to be met.


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

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Recent amendments

Full access to details of all the amendments is only available to Financial Reporting Faculty members. Find out how to join the faculty.

UK reduced disclosures – FRS 101

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

Amendments to the standard for FRS 101 preparers

There are no amendments to IAS 7 in order to comply with the Companies Act and related Regulation.

Disclosure exemptions for FRS 101 preparers

FRS 101 paragraph 8(h) states that a qualifying entity is exempt from preparing a statement of cash flows.

Current proposals

  1. 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.
  2. In 2021 the Board issued ED/2021/10 Supplier Finance Arrangements, proposing amendments to IAS 7 and IFRS 7. The ED uses ‘ supplier finance arrangements’ to refer to reverse factoring arrangements whereby a buyer enters into an arrangement under which it (or its suppliers) can access financing for amounts it owes to suppliers. The proposed amendments to IAS 7 will introduce additional disclosure requirements about supplier finance arrangements in order to provide users with the information that they need to understand the effects of the arrangements.

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This page was last updated 30 August 2022.