IASB launches review of the statement of cash flows

The International Accounting Standards Board (IASB) has announced the start of a research project to review and improve the requirements for the statement of cash flows and related matters in IFRS Accounting Standards. 

This project comes in response to feedback during the IASB’s Third Agenda Consultation when investors, companies and others identified this project as a high priority. Stakeholders—particularly investors—have suggested that the current requirements in IAS 7 Statement of Cash Flows could be enhanced to provide more useful information to users of financial statements. 

The IASB will now conduct its initial research, including meetings with stakeholders and review of existing studies, to gather evidence on the nature and extent of perceived deficiencies in current reporting and the likely benefits of developing new financial reporting requirements. 

The IASB plans to discuss the initial research outcomes and determine the next steps for this project in the first quarter of 2025.