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IFRS amendments require disclosures about debt financing liabilities

By Ken Tysiac

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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.