The International Accounting Standards Board (IAS) says it has responded to investor calls for increased transparency on how companies account for their debt.
The IAS has amended the IAS 7 Statement of Cash Flows to improve disclosure about changes to a company’s financial liabilities.
The aim is to help investors evaluate changes in liabilities arising from financing activities, including cash flow changes and foreign exchange gains or losses.
“These amendments respond to calls from investors for enhanced disclosures about changes in a company’s financing liabilities and are another step in our work to improve financial reporting disclosures,” said Hans Hoogervorst, chairman of the board.
The IAS 7 amendments become mandatory for annual periods beginning on or after January 1, 2017.
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