29. March 2016
Today, the ASCG has submitted a comment letter to EFRAG on the Discussion Paper The Statement of Cash Flows – Issues for Financial Institutions. The ASCG agrees with EFRAG’s observation that the Statement of Cash flows according to current conventions has limited relevance for financial institutions and that improvements to the Statement of Cash flows are necessary.
The disclosure of ratios designed to monitor liquidity and liquidity risk by banking authorities seems appropriate in order to enhance the usefulness of financial information; however, they should not replace the Statement of Cash flows. With regard to alternative enhancements as discussed by EFRAG, the ASCG does not believe these improvements to be overly promising.