Looking Good Ifrs 16 Cash Flow Statement Disclosure

IFRS 16 contains both quantitative and qualitative disclosure requirements.

Ifrs 16 cash flow statement disclosure. Companys background followed by IAS17 disclosures and then presented extracts from the 2019 financial statements that incorporate the requirements of IFRS16. Statement of cash flows presents inflows and outflows of cash and cash equivalents and is dealt with in IAS 7. Payments for the interest portion are classified as operating or financing activities in line with a companys policy election for interest paid.

As a result of the changes in terminology used throughout the IFRS Standards arising from requirements in IAS 1 Presentation of Financial Statements issued in 2007 the title of IAS 7 was changed to Statement of Cash Flows. This is not simply the amount shown for lease payments as part of financing activities in the cash flow statement which includes only principal repayments. The objective of the disclosure requirements is to give a basis for users of financial statements to assess the effect that leases have on the financial.

The objective of the disclosures is to provide users of financial statements with a basis to assess the effect of leasing activities on the entitys financial position performance and cash flows. Total cash outflows for leases. Find out more on which entities qualify and the criteria to be met.

IFRS 16 requires most leases to be recorded on balance sheet and therefore cash outflows arising from financing activities will generally increase due to IFRS 16. As operating type ie. Disclosures IFRS 16 requires different and more extensive disclosures about leasing activities than IAS 17.

Total cash outflows for leases. UK qualifying parents and subsidiaries can take advantage of FRS 101 Reduced Disclosure Framework. In January 2016 IAS 7 was amended by Disclosure Initiative Amendments to.

This Appendix focuses on the changes introduced by the requirements in IFRS 16 which is effective for annual periods beginning on or after 1 January 2019. IFRS 16 sets out a comprehensive model for the identification of lease arrangements and their treatment in the financial statements of both lessees and lessors. IFRS 16 also contains an overarching requirement for an entity to provide information to enable users to understand the impact that leasing transactions have on its financial position and performance.