EFRAG publishes its Discussion Paper on the Statement of Cash Flows

Submit your comments on EFRAG's Discussion Paper on the Statement of Cash Flows by 15 May 2025!

Objective of the Discussion Paper

The objective of the Discussion Paper (the ‘DP’) is to list the perceived issues with the statement of cash flows as prepared in accordance with IAS 7 Statement of Cash Flows. As encountered issue with the statement of cash flows depends on how the statement is being used / the objectives of the statement, the DP first lists possible objectives of the statement of cash flows and input collected on how the statement is being used by the primary users of financial statements. The DP considers which of the objectives of the statement of cash flows could be affected by each of the listed issues and which objectives might be affected by a solutions addressing each of the issues. The DP also presents some alternatives/supplements to the current statement of cash flows, that have been brought to EFRAG’s attention.

Relevance of the Statement of Cash Flows for Financial Institutions

The DP questions the relevance of the statement of cash flows for financial institutions and provides a list of alternatives that have been brought to the attention of EFRAG that could be considered for these entities.

Addressing the Identified Issues: Targeted Improvements vs. Comprehensive Review

Finally, the DP discusses whether the issues identified would be best addressed through targeted improvements or a comprehensive review of IAS 7.

Request for Comments

EFRAG welcomes any comments on the DP. Comments should be submitted by 15 May 2025 using this form.

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