Financial Reporting

摘要

The International Accounting Standards Board (IASB) has issued an exposure draft, Improvements to IFRS, which deals with non-urgent, but necessary amendments to International Financial Reporting Standards (IFRS). An amendment to IAS 7, Cash Flow Statements, clarifies that cashflows for expenditures incurred with the objective of generating future cashflows are classified as investing cashflows only when the expenditures are recognised as assets on the balance sheet. Such cashflows should be classified as operating activities, which is the common practice. However, some mining companies have been classifying such cashflows as investing cashflows. An amendment to IAS 18, Revenue, adds guidance on the determination of whether an entity is acting as a principal or as an agent. An entity is acting as a principal when it has exposure to the significant risks and rewards associated with the sale of goods or the rendering of services. An entity that is acting as agent includes only the commission in revenue.