Statement of Cash Flows and Related Matters

The IASB met on 19 March 2025 to discuss its initial research findings, including: 

• feedback from meetings with stakeholders;
• feedback from meetings with and research from national standard-setters; and
• an analysis of financial statements.

The initial research explored the nature and extent of possible improvements to the requirements in IAS 7 Statement of Cash Flows related to:

1. classification of cash flows;
2. aggregation and disaggregation of cash flow information; 
3. definitions of cash and cash equivalents; 
4. effects of non-cash transactions;
5. methods of reporting operating cash flows;
6. information about commonly used cash flow measures; and
7. the statement of cash flows for financial institutions. 

The IASB also discussed its main observations from the findings, which were that:

1. stakeholders’ issues with classification of cash flows, aggregation and disaggregation of cash flow information, and information about commonly used cash flow measures might share similar solutions. The IASB might resolve these issues by building on the requirements of other IFRS Accounting Standards, particularly those in IFRS 18 Presentation and Disclosure in Financial Statements.
2. information about non-cash transactions is a priority for users. The IASB might therefore consider a variety of approaches to improving the presentation or disclosure of such information, including building on disclosure requirements in IFRS Accounting Standards.
3. changes to the requirement for presenting cash flows from operating activities using the direct or the indirect method are not a priority for most stakeholders.
4. the statement of cash flows of financial institutions provides limited useful information to stakeholders. Consequently, the IASB will consider the costs and benefits to financial institutions when deciding on the applicability of some of the requirements for the statement of cash flows of financial institutions.

The IASB did not make any decisions.