Cash flow disclosure
A required note disclosing total cash outflows from leases, including principal, interest, and exempt lease payments.
Definition
IFRS 16 requires disclosure of the total cash outflow for leases in the reporting period. This includes the principal portion of lease payments (as a financing activity), interest paid (as a financing or operating activity depending on policy), and payments relating to short-term and low-value leases.
Why it matters
The cash flow disclosure provides transparency on the total cash committed to leases in the period. It is a required statutory note disclosure under IFRS 16.
In AuditLease
AuditLease produces the cash flow disclosure in the statutory accounts note output.
Related terms
Put this into practice with AuditLease
AuditLease handles IFRS 16 and FRS 102 lease calculations, statutory note generation, journal entries, and audit evidence — so your team spends less time on spreadsheets and more time on judgements.
This definition is for general information only and is not accounting or legal advice. Definitions are based on IFRS 16, FRS 102, and associated guidance published by the IFRS Foundation and the Financial Reporting Council. Users should refer to the applicable accounting standards and their professional advisers for judgement-specific matters.