EFRAG Research Project on the Statement of Cash Flows

Active
Research phase
Rasmus Sommer

​Following EFRAG's 2021 proactive research agenda consultation, EFRAG undertook a proactive project on the statement of cash flows for the following reasons:

  • Firstly, because the IASB decided to include a project on the statement of cash flows in its pipeline. An EFRAG project on the statement of cash flows could therefore be helpful for the IASB and could have an impact in the near future.
  • Secondly, because it presented an opportunity to consider some issues related to supplier finance arrangements. A project on supplier finance was one of the projects that received most support in the agenda consultation.

For the project to be as helpful for the IASB as possible, the main purpose of EFRAG’s project is to list the issues currently existing with the statement of cash flows as prepared in accordance with IAS 7 Statement of Cash Flows. Providing an inventory of these issues would, among other things, be helpful for the IASB when it has to decide on the scope of its project on the statement of cash flows. However, what is considered to be an issue could depend on what the statement of cash flow is used for. The discussion paper will therefore first examine what the objectives of the statement of cash flows are and how the statement is used. 

EFRAG expects to issue a discussion paper in H2 2024.