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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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ICAEW members and non-members can view a brief synopsis, amendments and details of current proposals.

*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.

Synopsis

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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Annual period starts
Effective version of standard
Notes on amendments 
On or after 1 January 2021
IAS 7 2019 Issued Standards Includes amendments 1–3.
1 January 2019 – 31 December 2020
IAS 7 2020 Required Standards Includes amendments 1 and 2.
1 January 2017 – 31 December 2018
IAS 7 2018 Required Standards Includes amendment 1

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.

1. Disclosure Initiative - Amendments to IAS 7

To be applied to periods beginning on or after 1 January 2017. Earlier adoption is permitted.

IAS 7 is amended to require additional disclosures that allow users of financial statements to evaluate changes in liabilities arising from financing activities. These include changes arising from cash flows and non-cash changes.

2. IFRS 16 amendment to IAS 7

To be applied to periods beginning on or after 1 January 2019. Earlier adoption is permitted.

IAS 7 is amended to remove references to finance leases and replace these with references to leases in respect of cash flows from financing activities and non-cash transactions.

3. IFRS 17 Insurance Contracts amendment to IAS 7*

To be applied to periods beginning on or after 1 January 2021. Earlier adoption is permitted.

IAS 1 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.

*Not EU endorsed as at 30 January 2020. Read more on EU endorsement.

UK reduced disclosures

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.

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.

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This page was last updated 30 January 2020