IASB proposes amendments to IAS 7 Statement of Cash Flows under the Disclosure Initiative

The Exposure Draft (“ED”) proposes amendments to IAS 7 Statement of Cash Flows to improve information provided to users of financial statements about an entity’s financing activities and liquidity.

• The proposed amendments would require an entity to provide (i) a reconciliation of the amounts in the opening and closing statement of financial position for each item for which cash flows have been, or would be, classified as financing activities, excluding equity items; and (ii) disclosure about matters that are relevant to understanding the entity’s liquidity, such as restrictions that affect the decisions of an entity to use cash and cash equivalent balances.
• Comments on the proposals are due by 17 April 2015.

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