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ESMA comment letter on the IASB's exposure draft of amendments to IAS 7

  • ESMA (European Securities and Markets Authority) (dark gray) Image

09 Apr 2015

The European Securities and Markets Authority (ESMA) has issued its comment letter on the IASB exposure draft (ED) proposing amendments that would improve disclosure in financial statements on an entity’s financing activities and liquidity.

On 18 December 2014, the IASB issued ED/2014/6 Disclosure Initiative (Proposed amendments to IAS 7). The main objectives of the proposal are to (1) improved information about an entity's financing activities, excluding equity items and (2) Improved disclosures about the liquidity of an entity.

In its comment letter, ESMA agrees with the amendments and “considers that they will result in improving the information on cash flows of the reporting entity”.  ESMA also comments that due to the importance placed on the analysis of information from cash flows by investors, the IASB should “perform a fundamental review of IAS 7 on a timely basis, as part of the Principles of Disclosures project”.

The full comment letter can be downloaded from the ESMA website.

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