As Part of the IASB's Disclosure Initiative "Amendments to IAS

question 61

Essay

As part of the IASB's Disclosure Initiative "Amendments to IAS 7 - Statement of Cash Flows", explain what companies are encouraged, but not required, to do in terms of changes in liabilities arising from financing activities.

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Definitions:

Communication

The process of transferring information, ideas, emotions, and intentions between two or more entities, typically through verbal, non-verbal, or written means.

Valued Outcome

An outcome from negotiations or decisions that is held in high esteem or considered beneficial by the involved parties.

Value Claiming

The process of negotiating to maximize one's own benefit from a deal or situation, often at the expense of others' interests.

Value Creating

The process of generating additional worth, utility, or benefits through innovative, entrepreneurial, or strategic activities.