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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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Financial Reporting Faculty members get full access. Login to get the version of the standard relevant to specific time periods via eIFRS.

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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.

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

Which version of the standard?

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Annual period starts
Effective version of standard
Notes on amendments 
On or after 1 January 2023
IAS 7 2021 Issued Standards Includes amendments 1 and 2*.
1 January 2019 – 31 December 2020
IAS 7 2020 Required Standards Includes amendments 1.
1 January 2018 – 31 December 2018
IAS 7 2018 Required Standards Does not include the amendments.

*Not UK endorsed as at 23 June 2021. Read more on UK endorsement of IFRS standards. Not EU endorsed as at 23 June 2021. Read more on EU endorsement of IFRS standards.

The Required Standards book for a particular year assumes that there is no early application of issued but not yet effective IFRSs; the Issued Standards book assumes early application of all issued IFRSs.

For the latest version of the standard, and where all amendments are to be adopted early, refer to IAS 7 2021 Issued Standards.

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. 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.

2. IFRS 17 Insurance Contracts amendment to IAS 7*

To be applied to periods beginning on or after 1 January 2023 (originally 2021, subsequently deferred). 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 UK endorsed as at 23 June 2021. Read more on UK endorsement of IFRS standards. Not EU endorsed as at 23 June 2021. Read more on EU endorsement of IFRS standards.

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.

Amendments to the standard

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

Disclosure exemptions

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 23 June 2021