BC45 When it issued IFRS 18 Presentation and Disclosure in Financial Statements in April 2024, the IASB also amended IAS 7:
(a) to require entities to use the operating profit or loss subtotal as the starting point for the indirect method of reporting cash flows from operating activities; and
(b) to introduce new requirements for the classification of interest and dividend cash flows in the statement of cash flows.
BC46 The amendments were made in response to requests from users of financial statements for requirements that would improve the comparability of one entity’s statement of cash flows with those of others by reducing ways in which the statement may be presented.