IFRS amendments require disclosures about debt financing liabilities

By Ken Tysiac

Amendments to IFRS issued Friday require companies to provide information about changes in their financing liabilities and were designed to answer requests from investors for information about changes in a company’s debt.

The International Accounting Standards Board (IASB) issued the changes to IAS 7, Statement of Cash Flows, which were created to help investors evaluate changes in liabilities arising from financing activities, including changes from cash flows and noncash changes such as foreign exchange gains or losses.

The changes are part of an initiative the IASB has undertaken to improve the effectiveness of disclosures in financial reports.

“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,” IASB Chairman Hans Hoogervorst said in a news release.

The amendments take effect for annual periods beginning on or after Jan. 1, 2017.

Ken Tysiac (ktysiac@aicpa.org) is a JofA editorial director.

SPONSORED REPORT

Cybersecurity threats proliferating for midsize and smaller businesses

This report details how SMBs can properly protect private information from breaches, design and implement a cybersecurity policy, and create safeguards for training and education.

QUIZ

Test yourself on these often confused words

The spelling checker on your word processing program can do only so much to flag problems. Your best insurance is to learn the troublesome words that trip up writers and use them correctly by the standards of formal, written English.