Disclosure on changes in financing liabilities | KPMG | GLOBAL
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Disclosure on changes in financing liabilities

Disclosure on changes in financing liabilities

Amendments to IAS 7 require additional disclosures.


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KPMG IFRS breaking news image: microphone in front of audience

The amendments are a response to a call from investors for improved disclosures about net debt

New disclosure

IAS 7 Statement of Cash Flows has been amended as part of the IASB’s broader disclosure initiative(PDF 64.6 KB) to improve presentation and disclosure in financial statements.


“While we welcome another step towards more valuable disclosures for users, the question remains whether these narrow-scope amendments will result in more relevant information about an entity’s cash dynamics, on a consistent and comparable basis."

Gabriela Kegalj, KPMG’s global IFRS presentation deputy leader


For some time, investors have been calling for more disclosures on net debt, a term not defined in IFRS. The Board has responded by requiring disclosures that enable users of financial statements to evaluate changes in liabilities arising from financing activities, including both changes arising from cash flow and non-cash changes.

One way to meet this new disclosure requirement is to provide a reconciliation between the opening and closing balances for liabilities arising from financing activities. However, the objective could also be achieved in other ways, which might be a relief for financial institutions or other entities that already present enhanced disclosures in this area.

Although disclosure of changes in other assets and liabilities is possible, such supplementary disclosure should be disclosed separately from changes in liabilities arising from financing activities.

Effective date

The amendments are effective for periods beginning on or after 1 January 2017, with earlier application permitted.

Find out

The IASB’s disclosure initiative (PDF 64.6 KB) continues to seek new ways to improve the effectiveness of disclosures in financial reports.

Visit our IFRS – Disclosures hot topics page for our latest insights on making financial statement disclosures clear and relevant.

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