Available for sale - Cash Flow Statement

I’ve found the classification on the Cash Flow Statement for trading securities (CFO) and held to maturity (CFI), but haven’t been able to find out where Available for sale securities must be classified on the CFS. Also, is there a difference here between IFRS and US GAAP?


There is no difference in CFS treatment of AFS securities compared with other financial classes.

USGAAP purchasing AFS security treated as other securities purchasing. Received dividends or interest treated as other security purchasing, cash flow from operations.

In IFRS both can be treated as CFO or CFI.

The difference is in BS and P/L treatment of AFS securities.

As for dividends/interests received I totally agree with you, but I know for certain that there is a difference in CFS regarding the capital cashflows, at least between trading securities (which are classified as CFO) and held to maturity (which is classified as CFI), but what about capital cashflows of AFS?¿

Purchasing and selling securities of each class (HTM, AFS, FVtPL (HFT)) are treated as operating or investing activities (CFO or CFI) under IFRS. Under USGAAP are treated as operating activities, doesn’t matter how you classed securities (AFS or other category).

I still disagree… I’ve read in several papers that in US GAAP Held to Maturity asset class is treated as a CFI.

Does anyone know for sure about the other securities classes, specifically regarding available for sale?

Purchase of Available for Sale securities (AFS) are classified as CFI.

The cash spent in the purchase of any investment (irrespective of whether it is classified as HTM, HFT, or AFS) is a CFI outflow.

The cash received in the sale of any investment (irrespective of whether it is classified as HTM, HFT, or AFS) is a CFI inflow.

There is an opposite opinion:

“IAS 7.14 includes a number of examples of operating cash flows, including cash receipts and payments from contracts held for dealing or trading purposes. IAS 7.15 notes that when an entity holds securities and loans for dealing or trading purposes, those items are similar to inventory acquired specifically for resale. As a result, the cash flows arising from the purchase and sale of dealing or trading securities are classified within operating activities.”