Jul 28, 2026 · 0 min · 7 segments
IASB Vice-Chair Linda Mezon-Hutter and IASB member Zach Gast discuss highlights from the July 2026 IASB meeting.
Linda Mezon-HutterHost
Zach GastGuestAnd just to remind everybody, this project was actually added to our pipeline as a result of the third agenda consultation, which was done some time ago.
But there was very strong demand from our stakeholders, and we were finally able to launch that recently.
And in particular, we're looking for ways to improve the requirements that exist today in IAS 7.
So those objectives were to strengthen the link between the statement of cash flows and the other parts of the financial statements, and to specify the content and location of information about non-cash transactions.
Now, one of the first questions I get from people is, who don't do the preparation of these statements is why on the statement of cash flows, we're talking about non-cash transactions.
The next objective was to extend the management-defined performance measure requirements in IFRS 18 to include certain cash flow measures, so we're considering that, and to improve the consistent application of the requirements for the classification of cash flows and the definition of cash equivalents, which is always a very interesting discussion.
Well, I will start with some of the current requirements, which is that non-cash transactions, not surprisingly, are excluded from the cash flow statement.
And when we talked to investors, some of the feedback we heard was that As finance and accounting has gotten more complex, these non-cash transactions have become more important to them because you can essentially replicate any cash transaction with a non-cash transaction today.
They would say that the information may be available, but it's difficult for them to pull it together comprehensively.
So our aim was to increase the transparency in this project and make that information easier to access and use.
And we've done that by trying to build on some existing good practices that are out there and improve them through testing with investors, preparers, and consultative groups.
And when we got to the July meeting, we tentatively decided to add, in terms of doing that, some application guidance around the scope of what transactions would be included.
We also looked at a disclosure objective where we were going to try to help investors understand how non-cash transactions contribute to changes in related assets, liabilities, and equity.
Another key point was the board decided that this information should be in a single note.
It should be aggregated by the type of transaction, identifying the related activities in the statement of cash flows, and shown alongside similar cash transactions.
And finally, we require presentation in a structured format, which isn't always a given.
And just to remind everybody, this project was actually added to our pipeline as a result of the third agenda consultation, which was done some time ago.
But there was very strong demand from our stakeholders, and we were finally able to launch that recently.
And in particular, we're looking for ways to improve the requirements that exist today in IAS 7.
So those objectives were to strengthen the link between the statement of cash flows and the other parts of the financial statements, and to specify the content and location of information about non-cash transactions.
Now, one of the first questions I get from people is, who don't do the preparation of these statements is why on the statement of cash flows, we're talking about non-cash transactions.
The next objective was to extend the management-defined performance measure requirements in IFRS 18 to include certain cash flow measures, so we're considering that, and to improve the consistent application of the requirements for the classification of cash flows and the definition of cash equivalents, which is always a very interesting discussion.
Well, I will start with some of the current requirements, which is that non-cash transactions, not surprisingly, are excluded from the cash flow statement.
And when we talked to investors, some of the feedback we heard was that As finance and accounting has gotten more complex, these non-cash transactions have become more important to them because you can essentially replicate any cash transaction with a non-cash transaction today.
They would say that the information may be available, but it's difficult for them to pull it together comprehensively.
So our aim was to increase the transparency in this project and make that information easier to access and use.
And we've done that by trying to build on some existing good practices that are out there and improve them through testing with investors, preparers, and consultative groups.
And when we got to the July meeting, we tentatively decided to add, in terms of doing that, some application guidance around the scope of what transactions would be included.
We also looked at a disclosure objective where we were going to try to help investors understand how non-cash transactions contribute to changes in related assets, liabilities, and equity.
Another key point was the board decided that this information should be in a single note.
It should be aggregated by the type of transaction, identifying the related activities in the statement of cash flows, and shown alongside similar cash transactions.
And finally, we require presentation in a structured format, which isn't always a given.
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