International Accounting Standard 7 – Statement of Cash flows – Compared to the Lebanese General Accounting Plan

Abstract

The purpose of this study is to challenge the differences between the statement of cash flows based on the Lebanese general accounting plan and the statement of cash flows as per IAS 7. The study is not limited to IAS 7 (IFRS) but includes ASC 230 (US GAAP) and the French general accounting plan as well. When comparing the statement of cash flows in accordance with ASC 230 and French general accounting plan with the statement of cash flows in accordance with IAS 7 requirements, it is concluded that the differences in classifying cash flows, components of cash and cash equivalents and the format of the statement are insignificant and, eventually, does not affect comparability. However, the comparability of Lebanese general accounting plan with IAS 7, ASC 230 and the French general accounting plan regarding the statement of cash flows is difficult due to the differences in classification of cash flows, components of cash and cash equivalents and the format of the statement. In addition, the theoretical part is supported by a questionnaire that was addressed to auditors in Lebanon. Hence, it is recommended to replace the current statement of cash flows with the recognized format as per IAS 7. In addition, upcoming research should focus more on the statement of cash flows in Lebanon so that reporting is in line with international standards.