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EFRAG issues endorsement advice letter on amendments to IAS 7 under the IASB’s disclosure initiative

  • EFRAG (European Financial Reporting Advisory Group) (dk green) Image

08 Jun 2016

The European Financial Reporting Advisory Group (EFRAG) has submitted to the European Commission its endorsement advice letter for the use of the amendments to International Accounting Standard (IAS) 7 ‘Statement of Cash Flows’ in the European Union (EU).

In January 2016 the International Accounting Standards Board (IASB) published Disclosure Initiative (Amendments to IAS 7).  The objective of the amendments is to provide disclosures that enable users of financial statements to evaluate changes in liabilities arising from financing activities, including both changes arising from cash flows and non-cash changes.

EFRAG supports the adoption of the amendments and recommends their endorsement.  EFRAG’s assessment is that the amendments meet the technical requirements of the Regulation (EC) No 1606/2002 of the European Parliament and of the Council on the application of international accounting standards.   

EFRAG also considers that the overall benefits of the amendments are likely to outweigh the associated costs to implement them.

EFRAG has also updated its endorsement status report to reflect the issuance of the endorsement advice.

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