IFRS Talks - PwC's Global IFRS podcast April 2025 - Electronic cash transfer amendments
Apr 24, 2025
In this discussion, Claire Howells, a corporate treasury expert at PwC UK, shares her insights on the recent IFRS 9 amendments impacting cash transfers. She highlights the changes in recognition and derecognition for electronic payments set for January 2026. The conversation navigates the complexities of cash accounting, including the challenges faced by multinationals and the necessity for robust compliance practices. Enhanced disclosures and proactive planning are emphasized as keys to maximizing benefits such as improved cash flow visibility.
AI Snips
Chapters
Transcript
Episode notes
Settlement Date Accounting Requirement
- IFRS 9 requires recognition and derecognition of cash transfers only upon actual cash receipt, called settlement date accounting.
- This approach caused concerns due to mixed existing practices and operational challenges.
Check Payment Year-End Example
- Sending a check before year-end but clearing occurs only after means liabilities and cash remain on the balance sheet until clearance.
- This contrasts with past treatments where sending the check was considered completion.
Disclose Restricted Cash
- Entities should disclose that cash set aside for payments not yet cleared at period end is not available for general use.
- Consider disaggregating such cash balances in financial statements if material for better user understanding.