The International Accounting Standards Board has embarked on a research project to review and improve the requirements for the statement of cash flows and related matters in International Financial Reporting Standards.
The project is in response to feedback received during the IASB's third agenda consultation. Investors, companies and others identified this project as a high priority. Some stakeholders, especially investors, suggested that the current requirements in the existing standard, IAS 7 Statement of Cash Flows, could be improved to provide more useful information to users of financial statements.
The IASB said it will now conduct its initial research, including meetings with stakeholders and review of existing studies, to gather evidence on the nature and extent of perceived deficiencies in current reporting and the likely benefits of developing new financial reporting requirements.
The IASB plans to discuss the initial research outcomes and determine the next steps for the project in the first quarter of 2025.
In the U.S., the Financial Accounting Standards Board has also added a project to its technical agenda to make
