IAS 7Chapter 9Lesson 3
Components of cash, restricted cash and encouraged disclosures
Step 1 of 8Learning objectives
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The entity discloses the components of its cash and cash equivalents, reconciles them with the balance sheet line items and discloses the policy adopted to determine them; a change in that policy follows IAS 8. It discloses, with a management commentary, significant balances not available for use by the group. Other information (undrawn facilities, cash flows to maintain and to increase capacity, cash flows by segment) is encouraged, not required.
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Learning objectives
- Prepare the disclosure on the components of cash, the reconciliation with the balance sheet and the policy adopted.
- Assess whether significant balances are unavailable to the group and draft the disclosure.
- Distinguish required disclosures from encouraged disclosures.