IASB member discusses disclosures about changes in financing liabilities

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21 Feb 2019

IASB member Nick Anderson has issued an article discussing the objectives of the 2016 IAS 7 amendments that require companies to provide disclosures about changes in liabilities arising from financing activities.

In his article, Mr Anderson looks at what is required by the amendments and why this disclosure so important for investor analysis.

Aspects he considers are:

  • Is this different from a ‘net debt reconciliation’?
  • Reconciliation to other areas of the financial statements
  • Sufficient disaggregation
  • Adequate explanation
  • Simple communication

Very helpful are little shaded boxes throughout the article that summarise questions such as "What does good disclosure look like?" or recommendations such as "Companies can help users by...".

Please click to access the article on the IASB website.

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