Annual Update for Accountants and Auditors: 2020

Chapter 1FASB Accounting Standards Updates — Broad Issues

Learning objective

• Identify recently issued FASB Accounting Standards Updates (ASUs) that cover broad issues, other than those related to the “big three” of revenue recognition, financial instruments, and leases.

This chapter presents ASUs that are general in nature and typically originated with the input of the full board. The ASUs covered in this chapter are those that have effective dates in 2018 or later. Therefore, several ASUs issued in prior years are included in this chapter. Effective dates for public business entities are frequently different than those for other entities.

FASB ASU No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments (a consensus of the Emerging Issues Task Force)

Why was this ASU issued?

The original standard on presentation of the statement of cash flows was issued nearly 30 years ago. Over time, diversity in practice on classifying certain cash flows has caused inconsistency in the reporting of cash flows. This update was issued to address the inconsistencies and to provide a framework for determining transactions that do not have specific guidance.

Who is affected by this ASU?

The amendments in this update apply to all entities, including business entities and not-for-profit entities that are required to present a statement of cash flows under FASB ASC 230, Statement of Cash Flows.

What are the main provisions of this ASU? ...