Section 1540 - Cash flow statement

Effective date:

January 1, 2011 except for subsequent amendments

Published by AcSB:

December 2009


Information about the cash flows of an enterprise enables users of financial statements to assess the capacity of the enterprise to generate cash and cash equivalents and the needs of the enterprise for cash resources. The adequacy of expected cash inflows, taking into consideration their timing and certainty of generation, is evaluated against cash resources required to repay maturing financial obligations, to finance the growth of productive assets and to make distributions to owners. Historical cash flow information is often used as an indicator of the amount, timing and certainty of future cash flows.

The purpose of this Section is to require the provision of information about the historical changes in cash and cash equivalents of an enterprise by means of a cash flow statement that classifies cash flows during the period arising from operating, investing and financing activities.

History of Section 1540




December 2009

Part II of the CPA Canada Handbook  issued

Effective for fiscal years beginning on or after January 1, 2011.

October 2013

Annual improvements

Paragraph .22(a), has been amended to remove the reference to non-controlling interests. Effective for fiscal years beginning on or after January 1, 2014.

April 2021

2021 Annual improvements

Paragraph 1540.47, has been amended to remove the requirement to disclose in aggregate, in respect of both business combinations and disposals of business units during the period, the total assets, other than cash or cash equivalents, and total liabilities acquired or disposed of. The amendment is effective for annual financial statements relating to fiscal years beginning on or after January 1, 2022. Earlier application is permitted.

Note: The above summary does not include details of consequential amendments made as the result of other projects.

Amendment under consideration

  • None

Correction list for hyphenation

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