IFRS for SMEs: New Module on Section 7 Statement of Cash Flows

Posted 22 July 2025 Written by Acts Online
Category Financial and Accounting

Brought to you by SA Accounting Academy: The IFRS Foundation has released a technical educational module to support the implementation of the third edition of the IFRS for SMEs Accounting Standard, specifically focusing on Section 7.

In terms of Section 7: Statement of Cash Flows of the IFRS for SMEs Accounting Standard (Third Edition), the International Accounting Standards Board (IASB) technical staff has issued guidance to assist in the preparation and reading of financial statements. This module aligns with the requirements of the third edition of the Standard, which was issued in February 2025.

The module is designed for entities that do not have public accountability and publish general purpose financial statements, as defined under Section 1: Small and Medium-sized Entities. It provides a technical framework for the concepts underlying cash flow presentation, ensuring that reporting entities correctly classify operating, investing, and financing activities.

Key focus areas of the educational module

  • Guidance on the scope of the IFRS for SMEs Accounting Standard in relation to cash flow reporting.
  • Technical support for the presentation requirements of Section 7.
  • Application of concepts for entities transitioning to or maintaining compliance with the February 2025 Third Edition.

Click here to download the IFRS for SMEs Educational Module 7: Statement of Cash Flows.

What this means for you, your business, or your clients

  • For yourself: You must update your technical knowledge regarding the classification and presentation changes introduced in the February 2025 Third Edition of the Standard to ensure your professional advice remains compliant.
  • For your business: Your firm must review and potentially update financial reporting templates and internal accounting manuals to align with the technical interpretations provided in the new Section 7 module.
  • For your clients: You should advise clients who fall under the Section 1 definition of SMEs on how to correctly structure their cash flow statements to meet the revised IASB technical staff expectations for the 2025 reporting period.

Originally published at https://accountingacademy.co.za/news/read/ifrs-foundation-ifrs-for-smes-educational-module-7

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