A European example of issues arising in identifying cash equivalents As part of its activities, the European Securities and Markets Authority (ESMA) organizes a forum of enforcers from 42 different European jurisdictions, all of whom carry out monitoring and review programs similar to those carried out here by the Canadian Securities Administrators. ESMA recently published…
Various observations on limitations of the cash flow statement A former IASB board member, Steven Cooper, is among those behind the recently established blog The Footnotes Analyst. A recent entry focused on the significance of investing and financing transactions not involving the movement of cash, and therefore excluded from the cash flow statement: the new…
Here’s another of the issues arising from extracts of enforcement decisions issued in the past by the European Securities and Markets Authority (ESMA) (for more background see here); this is from their 22nd edition: Subsidiary A of the issuer issued perpetual notes. The issuer faced liquidity issues. One of the provisions of the financing agreement…
A while ago, at its June 2010 meeting, CPA Canada’s IFRS Discussion group addressed the issue of reporting cash flow per share, in the following terms: Since 2003, (old) Canadian standards have specifically prohibited financial statement presentation of cash flow per share information. IFRSs are silent on this issue; neither IAS 7 Statement of Cash…
As part of its multi-faceted disclosure initiative, the IASB has finalized its amendments to Statement of Cash Flows, effective for annual periods beginning on or after January 1, 2017. The amendment adds the following requirement: “An entity shall provide disclosures that enable users of financial statements to evaluate changes in liabilities arising from financing activities,…
The OSC has issued OSC Staff Notice 51-724 Report on Staff’s Review of REIT Distributions Disclosure. Here’s the summary from the news release: Real estate investment trusts (REITs) provide investors with cash flow in the form of distributions. However, REITs are subject to a number of factors that may negatively affect their cash available for…
Here’s an extract from a recent speech delivered at the 2014 AICPA National Conference on Current SEC and PCAOB Developments by T. Kirk Crews, Professional Accounting Fellow in the Office of the Chief Accountant: “From time to time, the staff reviews restatement data to understand current trends and potential practice issues. One observation that we…
As part of its multi-faceted disclosure initiative, the IASB has issued an exposure draft of proposed amendments to IAS 7 Statement of Cash Flows, with comments to be received by April 17, 2015. The main amendment proposes adding the following paragraph: “An entity shall provide a reconciliation of the amounts in the opening and closing…
by John Hughes The July issue of IFRIC update set out the Committee’s discussion on a rather strange issue. I’ll paste it here in its entirety: “The submitter observed that there are divergent views on the presentation and content of the condensed statement of cash flows (in interim financial statements). One view is that an entity…
A recent European example of issues related to the cash flow statement, and an example of applying a prominent financial instrument exemption Here’s another of the issues from some extracts of enforcement decisions recently issued by the European Securities and Markets Authority (ESMA) (for more background see here): “The issuer operates in the mining industry…
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