IAS 7 at a glance
Insights into IAS 7IAS 7 sets out the requirements for presenting statements of cash flows. This article provides an overview of its objective, scope and key requirements.
The preparation of financial statements in accordance with International Financial Reporting Standards (IFRS) is challenging. Each year, new Standards and amendments are published by the International Accounting Standards Board (IASB). These changes have the potential to significantly impact the presentation of a complete set of financial statements, and 2025 is no different.
Example consolidated financial statements
Our Example Financial Statements have been updated to reflect changes in IFRS Accounting Standards that are effective for the year ending 31 December 2025.
These 2025 Example Financial Statements are based on the activities and results of Illustrative Corporation and its subsidiaries (‘the Group’ or the ‘Illustrative Corporation Group’) – a fictional consulting, service and retail entity that has been preparing IFRS consolidated financial statements for several years. The form and content of IFRS financial statements will always depend on the activities and transactions of the reporting entity.
In addition, we are pleased to share Appendix E to the Example Financial Statements - IFRS 18 ‘Presentation and Disclosure in Financial Statements’. This appendix presents a selection of extracts from the Example Financial Statements, including the consolidated statement of profit or loss and statement of cash flows, prepared as if the Group had (early) adopted IFRS 18 in the year ended 31 December 2025. It also includes illustrative transition disclosures and illustrates the new disclosures about management-defined performance measures and disclosures of specified expenses by nature required by IFRS 18.
Appendix E - Presentation and disclosure
In this appendix, we illustrate some of the key changes to the Example Financial Statements that would be required if the Group had (early) adopted IFRS 18 in the year ended 31 December 2025.
Our objective in preparing these Example Financial Statements is to illustrate financial reporting by an entity engaging in transactions that are typical across a range of non-specialist sectors. However, as with any publication of this type, these example financial statements cannot envisage every possible transaction and therefore cannot be regarded as comprehensive. Management, as defined by the IASB, is ultimately responsible for the fair presentation of financial statements and therefore they may find other approaches more appropriate for its specific circumstances.
These Example Financial Statements have been updated to reflect changes in IFRS that are effective for the year ending 31 December 2025. No account has been taken of any new developments after 31 August 2025.
Chetan Hans
Partner – Head of CFO Advisory
Related insights
Step 3: Determining the transaction price
Insights into IFRS 15Accurate and consistent revenue recognition is a cornerstone of sound financial reporting for all businesses, ensuring comparability across industries and markets. The objective of determining the transaction price under IFRS 15 is to identify the amount of consideration an entity expects to be entitled to in exchange for transferring goods or services to a customer.
Principal versus agent considerations
Insights into IFRS 15IFRS 15 ‘Revenue from Contracts with Customers’ was jointly developed by the International Accounting Standards Board (IASB) and the Financial Accounting Standards Board (FASB) to harmonise revenue reporting under IFRS and US GAAP. In this article, we explore how to assess principal versus agent relationships and their impact on revenue recognition.