AASB 107 Statement of Cash Flows
The Australian adoption of IAS 7: the duty to present a statement of cash flows, what counts as cash and cash equivalents, classification into operating, investing and financing activities, the direct and indirect methods, gross versus net reporting, foreign currency, interest, dividends and tax flows, business acquisitions and disposals, non-cash transactions, and the disclosures of financing liability movements, supplier finance arrangements, cash components and restricted balances, with the 2027 AASB 18 and 2028 AASB 2026-4 changes noted on the affected leaves.
AASB 107 Statement of Cash Flows is a compliance framework from Australia (Commonwealth) with 5 domains and 22 controls that map to 3 other frameworks. The largest domains are Presentation and classification of cash flows (paragraphs 10 to 24 and Aus20.2) – AASB 107 Statement of Cash Flows (8 controls), Specific items: foreign currency, interest and dividends, taxes, investees, ownership changes and non-cash transactions (paragraphs 25 to 44) – AASB 107 Statement of Cash Flows (6 controls), Disclosures: financing liabilities, supplier finance, cash components, restricted balances and encouraged information (paragraphs 44A to 52) – AASB 107 Statement of Cash Flows (5 controls). Every control below carries what it requires and what an assessor expects to see.
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Framework Domains (5)
Commencement, withdrawal, effective date and transition, Appendix A and illustrative examples (Aus52.1 to 65, AusA1) – AASB 107 Statement of Cash Flows
| Code | Title |
|---|---|
| aasb-107-statement-of-cash-flows::53-65 | Apply the Standard and each amendment from its effective date, taking the transition reliefs for the financing liabilities and supplier finance disclosures and disclosing early application |
Disclosures: financing liabilities, supplier finance, cash components, restricted balances and encouraged information (paragraphs 44A to 52) – AASB 107 Statement of Cash Flows
| Code | Title |
|---|---|
| aasb-107-statement-of-cash-flows::44A-44E | Disclose the movements in financing liabilities (and related hedging assets) from cash flows and non-cash changes, typically as an opening-to-closing reconciliation linked to the primary statements |
| aasb-107-statement-of-cash-flows::44F-44H | Disclose supplier finance arrangements: terms, carrying amounts and line items, amounts already paid by finance providers, payment due date ranges and non-cash changes |
| aasb-107-statement-of-cash-flows::45-47 | Disclose the components of cash and cash equivalents, reconcile them to the statement of financial position, state the composition policy and report policy changes under AASB 108 |
| aasb-107-statement-of-cash-flows::48-49 | Disclose, with management commentary, significant cash balances that are not available for use by the group |
| aasb-107-statement-of-cash-flows::50-52 | Consider the encouraged disclosures: undrawn borrowing facilities, cash flows that increase versus maintain operating capacity, and cash flows by reportable segment |
Objective, scope, benefits and definitions (objective, paragraphs 1 to 9) – AASB 107 Statement of Cash Flows
| Code | Title |
|---|---|
| aasb-107-statement-of-cash-flows::1 | Prepare a statement of cash flows for every period presented and present it as an integral part of the financial statements |
| aasb-107-statement-of-cash-flows::7-9 | Admit to cash equivalents only short-maturity, low-risk holdings held to meet short-term commitments, treat on-demand overdrafts as part of cash where they are part of cash management, and exclude transfers between cash components |
Presentation and classification of cash flows (paragraphs 10 to 24 and Aus20.2) – AASB 107 Statement of Cash Flows
| Code | Title |
|---|---|
| aasb-107-statement-of-cash-flows::10-12 | Report the period's cash flows under the three activity headings and split a single transaction between headings where its components differ |
| aasb-107-statement-of-cash-flows::13-15 | Classify as operating the cash effects of the principal revenue-producing activities and of transactions that enter profit or loss, including dealing and trading portfolios and the loans of financial institutions |
| aasb-107-statement-of-cash-flows::16 | Classify as investing only those expenditures that create a recognised asset, together with the related receipts, derivative flows not held for dealing, and advances to other parties |
| aasb-107-statement-of-cash-flows::17 | Classify as financing the cash effects of raising and returning capital, borrowing and repaying, and the principal portion of lease payments |
| aasb-107-statement-of-cash-flows::18-20 | Report operating cash flows by the direct method (encouraged) or the indirect method, applying the prescribed adjustments |
| aasb-107-statement-of-cash-flows::21 | Present investing and financing receipts and payments gross by major class, except where net reporting is specifically allowed |
| aasb-107-statement-of-cash-flows::22-24 | Report on a net basis only customer-driven flows, quick-turnover large short-maturity items, and the deposit and lending flows of a financial institution |
| aasb-107-statement-of-cash-flows::Aus20.2 | Not-for-profit entities using the direct method and highlighting net cost of services must reconcile operating cash flows to that figure |
Specific items: foreign currency, interest and dividends, taxes, investees, ownership changes and non-cash transactions (paragraphs 25 to 44) – AASB 107 Statement of Cash Flows
| Code | Title |
|---|---|
| aasb-107-statement-of-cash-flows::25-28 | Translate foreign currency cash flows at the rate on the date of the flow, translate foreign subsidiaries' flows at transaction-date rates, and show the exchange effect on cash held separately |
| aasb-107-statement-of-cash-flows::31-34 | Disclose interest and dividends received and paid separately and classify each consistently from period to period |
| aasb-107-statement-of-cash-flows::35-36 | Disclose income tax cash flows separately and classify them as operating unless specifically attributable to investing or financing |
| aasb-107-statement-of-cash-flows::37-38 | For investees accounted for by the equity method or at cost, report only the cash flows between the investor and the investee |
| aasb-107-statement-of-cash-flows::39-42B | Present the cash effects of obtaining or losing control of businesses separately as investing, net of cash acquired or disposed, with the four aggregate disclosures, and classify other ownership changes in subsidiaries as financing |
| aasb-107-statement-of-cash-flows::43-44 | Keep non-cash investing and financing transactions out of the cash flow statement and disclose them elsewhere with the relevant information |
Your Compliance Coverage
If you comply with AASB 107 Statement of Cash Flows, you already cover:
Maps to 3 other frameworks
Coverage is not the same as your position
This page shows what AASB 107 Statement of Cash Flows overlaps with in general. Where your organisation actually stands, against the standard you are going for and the certifications you already hold, is a different question. Same graph and the same recorded refutations, scoped to you rather than to a pair.
The Compliance Position Diagnostic, $5,000 fixed, ten business daysWhat is AASB 107 Statement of Cash Flows and who does it apply to?
AASB 107 Statement of Cash Flows is a compliance framework from Australia (Commonwealth) with 5 domains and 22 controls. The Australian adoption of IAS 7: the duty to present a statement of cash flows, what counts as cash and cash equivalents, classification into operating, investing and financing activities, the direct and indirect methods, gross versus net reporting, foreign currency, interest, dividends and tax flows, business acquisitions and disposals, non-cash transactions, and the disclosures of financing liability movements, supplier finance arrangements, cash components and restricted balances, with the 2027 AASB 18 and 2028 AASB 2026-4 changes noted on the affected leaves. It is used by organisations to establish and maintain compliance with industry standards and regulatory requirements.
What does AASB 107 Statement of Cash Flows actually require?
AASB 107 Statement of Cash Flows has 22 controls organised across 5 domains. The largest domains are Presentation and classification of cash flows (paragraphs 10 to 24 and Aus20.2) – AASB 107 Statement of Cash Flows (8 controls), Specific items: foreign currency, interest and dividends, taxes, investees, ownership changes and non-cash transactions (paragraphs 25 to 44) – AASB 107 Statement of Cash Flows (6 controls), Disclosures: financing liabilities, supplier finance, cash components, restricted balances and encouraged information (paragraphs 44A to 52) – AASB 107 Statement of Cash Flows (5 controls). Each control defines specific requirements that organisations must implement to achieve compliance.
If I already comply with another framework, how much of AASB 107 Statement of Cash Flows do I already cover?
AASB 107 Statement of Cash Flows maps to 3 other compliance frameworks. The top mapping partners are AASB 18 Presentation and Disclosure in Financial Statements (45% coverage), AASB 101 Presentation of Financial Statements (9% coverage), AASB 1054 Australian Additional Disclosures (9% coverage). Use our comparison tool to explore control-level mappings between frameworks.
How do I implement AASB 107 Statement of Cash Flows?
Start your AASB 107 Statement of Cash Flows compliance journey by running a self-assessment on our platform to identify your current compliance posture. Our AI advisory can answer specific questions about AASB 107 Statement of Cash Flows requirements, and cross-framework mapping helps you leverage existing controls from other frameworks you may already comply with. Create a free account to access all 22 controls and track your progress.
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