In this article we’ll look at the disclosure requirements for statements of cash flows.
Disclosures required under IAS 7 include:
- A reconciliation of the ending cash balance to the statement of financial position headings. (e.g. cash, bank overdraft, bank deposits)
- Cash flows relating to the acquisition and disposal of business entities
- Changes in assets and liabilities which are related to non-cash financing or investing activities. (e.g. assets acquired under finance leases)
- Cash which is not available for use. The amount and nature of any cash held by the entity, which is not available for use should be disclosed. The reason for any restriction should also be disclosed.
The following is also required as a disclosure note in the financial statements regarding cash:
- a note showing the components of cash and cash equivalents, and
- a reconciliation of the amounts in the statement of cash flows with the amounts in the statement of financial position