IAS 7 — Items recommended not to be included in annual improvements ED (2012-2014 cycle) Classification of expenditures IAS 7

Date recorded:

Oral update

In March 2013 the issues of the definition of cashflows within operating, investing and financing activities was discussed. As a result of the Committee meeting, the proposal was to amend paragraph 16 of IAS 7 Statement of Cash Flows and eliminate the guidance that suggested only expenditure which results in the recognition of an asset in the statement of financial position is eligible for classification as an investing activity in the statement of cash flows. The changes were seen as giving precedence to classification of cashflows by nature. In April 2013, the IASB rejected this proposal as the existing guidance currently provides consistency in cashflows classification, noting that IFRS 6 Exploration for and Evaluation of Mineral Resources allowed such expenditure to be treated as and expense or an asset.

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