IFRS expert David Cairns provides
a round-up of the key changes in international accounting standards
and developments at the International Accounting Standards Board
IASB
Improvements to IFRS
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.
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