Statement of Cash Flows and Related Matters
Project Type:
Influencing
Status:
Active
Milestone:
Monitoring
In September 2024, the IASB began the project on Statement of Cash Flows and Related Matters to address feedback from stakeholders about perceived deficiencies with the current requirements of IAS 7 Statement of Cash Flows.
In May 2025, the IASB tentatively decided that the scope of the project will include:
- disaggregation of cash flow information;
- reporting of information about non-cash transactions;
- transparency of information communicated about cash flow measures not specified in IFRS Accounting Standards;
- consistent application of requirements to classify cash flows as operating, investing and financing; and
- consistent application of the definition of ‘cash equivalents’.
The IASB is also considering how any of the above improvements might apply to the statement of cash flows for financial institutions.
Background
The IASB added a project on the Statement of Cash Flows and Related Matters to its research pipeline following feedback on its Request for Information: Third Agenda Consultation.
In the Feedback Statement to the Request for Information (published July 2022) most respondents recommended the addition of a potential project on cash flows to the IASB’s workplan and many of them rated it as high priority.
The IASB staff performed initial research to gather evidence of the nature and extent of the perceived deficiencies and the likely benefits of developing new financial reporting requirements for IAS 7 Statement of Cash Flows. This research provided evidence to support the IASB’s decision on the scope of the project. The initial research also addressed possible ways of improving the perceived deficiencies and the IASB discussed the initial research outcomes in March 2025.
In May 2025, the IASB tentatively decided that the scope of the project will include five main topics as set out above.
In January 2026, the IASB moved the project to standard setting and the IASB is expected to publish an Exposure Draft in 2027.
The UKEB undertook its own research on this topic between October 2024 and July 2026.
Outreach
The UKEB periodically consults its Advisory Groups and obtains Board feedback as and when necessary.
UKEB Meetings
UKEB Meetings
- September 2026: Agenda Paper 12: IASB General Update Appendix D – Scoping requirements in IAS 7 Statement of Cash Flows for financial institutions: ASAF questions (for discussion) including Annex 1 – Update on the IASB project status: Classification and presentation of cash flows related to derivatives and government grants, non-cash transactions, and approach to the statement of cash flows for financial institutions (for noting).
- June 2026: Appendix B – IASB project approach to Financial Institutions including ASAF questions (for discussion)
- June 2026: Agenda Paper 8: IASB General Update Appendix G - Update on the IASB project status: Disaggregation of cash flow information (for noting)
- May 2026: Agenda Paper 8: IASB General Update Appendix B – Update on the IASB project status: Cash and cash equivalents (for discussion)
- February 2026: Agenda Paper 9: IASB General Update – Appendix C – IASB General update and ASAF questions on non-cash information.
- January 2026: Agenda Paper 8: IASB General Update – Appendix B – update on the IASB project status: approach to cash flow measures, classification and discontinued operations (for noting)
Timeline
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1
Monitoring
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The UKEB is currently monitoring this project for further updates.