In December 2014, the IASB issued an Exposure Draft (ED) called Disclosure Initiative: Proposed Amendments to IAS 7 concerning potential improvements to the statement of cash flows. The first proposed recommendation's purpose is to improve the information provided to users about companies' financing activities, excluding equity financing. It would require entities to provide a reconciliation of the opening and closing balances of amounts reported on the statement of financial position that would involve financing activities (excluding those dealing with equity items). The effect will be to provide improved information useful in understanding an entity's debt and changes in debt during the period.
Instructions
(a) Obtain access to the December 2014 exposure draft on the IASB website, and to the financial statements of Brookfield Office Properties Inc. for its year ended December 31, 2014, from SEDAR (www.sedar.com). Relate the information on the statement of financial position and the corresponding financial statement notes 14, 15, and 30 with the entries on the statement of cash flows for the largest element of debt for Brookfield Office Properties-its commercial property debt. Attempt to prepare a reconciliation, as suggested by the exposure draft, using the current disclosure that has been provided.
(b) If your reconciliation does not balance, suggest a likely source of any difference. Comment on the usefulness of the reconciliation you have prepared in part (a).
(c) Where else in the current financial statement disclosure is the user provided with a reconciliation of the beginning and ending balances of elements in the statement of financial position?