One way to fulfil the disclosure requirement in paragraph 44A is by providing
a reconciliation between the opening and closing balances in the statement of
financial position for liabilities arising from financing activities, including the
changes identified in paragraph 44B. Where an entity discloses such a
reconciliation, it shall provide sufficient information to enable users of the
financial statements to link items included in the reconciliation to the
statement of financial position and the statement of cash flows.
If an entity provides the disclosure required by paragraph 44A in combination
with disclosures of changes in other assets and liabilities, it shall disclose the
changes in liabilities arising from financing activities separately from changes
in those other assets and liabilities.
Components of cash and cash equivalents
An entity shall disclose the components of cash and cash equivalents and
shall present a reconciliation of the amounts in its statement of cash flows
with the equivalent items reported in the statement of financial position.
In view of the variety of cash management practices and banking
arrangements around the world and in order to comply with IAS 1 Presentation
of Financial Statements, an entity discloses the policy which it adopts in
determining the composition of cash and cash equivalents.
The effect of any change in the policy for determining components of cash
and cash equivalents, for example, a change in the classification of financial
instruments previously considered to be part of an entity’s investment
portfolio, is reported in accordance with IAS 8 Accounting Policies, Changes in
Accounting Estimates and Errors.
Other disclosures
An entity shall disclose, together with a commentary by management, the
amount of significant cash and cash equivalent balances held by the entity
that are not available for use by the group.
There are various circumstances in which cash and cash equivalent balances
held by an entity are not available for use by the group. Examples include cash
and cash equivalent balances held by a subsidiary that operates in a country
where exchange controls or other legal restrictions apply when the balances
are not available for general use by the parent or other subsidiaries.
Additional information may be relevant to users in understanding the
financial position and liquidity of an entity. Disclosure of this information,
together with a commentary by management, is encouraged and may
include:
(a)
the amount of undrawn borrowing facilities that may be available for
future operating activities and to settle capital commitments,
indicating any restrictions on the use of these facilities;
(b)
[deleted]
44D
44E
45
46
47
48
49
50
IAS 7
A1052 © IFRS Foundation