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EFRAG has issued a draft endorsement advice letter and a separate invitation to comment relating to the endorsement for use in the EU of Disclosure Initiative - Amendments to IAS 7 (the Amendments).
The objective of the Amendments is to provide disclosures that enable users of financial statements to evaluate changes in liabilities arising from financing activities, including both changes arising from cash flows and non-cash changes.
The Amendments become effective for annual periods beginning on or after 1 January 2017, with earlier application permitted.
EFRAG's overall preliminary assessment is that the Amendments satisfy the criteria for endorsement for use in the EU and therefore recommends their endorsement.
EFRAG is seeking comments on all aspects of its analyses supporting its preliminary conclusions. Comments are requested by 13 May 2016.