27/10/2023 - SAVE THE DATE - Roundtable on the Statement of Cash Flows – Is there a need for change? – Financial Institutions – 17 November 2023
EFRAG invites financial institutions and auditors of financial institutions to a roundtable discussion on its proactive research project on the statement of cash flows. The targeted outreach event will focus on identifying the objectives/uses of and the issues with how the statements of cash flows are currently prepared, focusing more specifically on financial institutions.
This closed event will take place on 17 November, from 13.30 to 16.00 CET and will be held online. Register here.
EFRAG is organising a roundtable discussion on the proactive research project The Statement of Cash Flows: Issues for Financial Institutions. The discussion will focus on the objectives and uses of the statement of cash flows, and issues with how the statement of cash flows is currently prepared under the requirements of IAS 7 Statement of Cash Flows.
Following the 2021 consultation on EFRAG's research agenda, EFRAG started its research project on the statement of cash flows. The project is intended to provide useful input for the IASB's research project. EFRAG is planning to issue a Discussion Paper for public comments that will.
(a) List, and shortly discuss, different alternative objectives/uses of the statement of cash flows. This will include considering whether the statement should reflect changes in cash, changes in cash and cash equivalents or changes in working capital or net debt.
(b) List the issues with current requirements/practice. The issues would be categorised/labelled according to which objective/use of the statement of cash flows (in (a)) they would be related to.
(c) Discuss whether the IASB could consider the issues by targeted amendments to IAS 7, or a comprehensive review would be necessary to deal with the issues in a satisfactory manner.
The roundtable discussions are intended to receive input for (a) and (b) listed above.
In July 2015, EFRAG has published its Discussion Paper The Statement of Cash Flows: Issues for Financial Institutions, which addressed the relevance of the statement of cash flows for financial institutions among other topics. The research confirmed that the statement of cash flows has limited relevance for financial institutions. At the beginning of 2023, EFRAG reconfirmed that there were particular issues with the usefulness of the statement of cash flows for financial institutions that would need specific consideration. Therefore, the exchange of views on the objectives and uses of the statement of cash flows, and issues with how the statement of cash flows are currently prepared will be specific for banks, insurance companies and conglomerates that engage in one or both of these activities.
The closed event focuses on financial institutions and auditors of financial institutions. Every participant has speaking rights and is expected to exchange views.
The closed event will be held online on 17 November, from 13.30 to 16.00 CET.
We will organise separate roundtables for corporates (preparers and auditors) on 27 November or 4 December and users/academics on 1 December.
To prepare for the roundtable discussions, you can refer to the Discussion Paper The Statement of Cash Flows: Issues for Financial Institutions.
Please register here to participate. For questions, please contact Ioanna Michailidi (ioanna.michailidi@efrag.org) or Kathrin Schöne (kathrin.schoene@efrag.org).
