Wiley GAAP 2018, 16th Edition

7ASC 230 Statement of Cash Flows

1. Perspective and Issues
   1. Technical Alert
      1. ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments
      2. ASU 2016-18, Statement of Cash Flows (Topics 230), Restricted Cash, a Consensus of the FASB's Emerging Issues Task Force
   2. Subtopic
   3. Scope and Scope Exceptions
   4. Overview
2. Definitions of Terms
3. Concepts, Rules, and Examples
   1. Cash Focus
   2. Classification of Cash Receipts and Disbursements
   3. Operating Activities Presentation
      1. The Direct Method
      2. The Indirect Method
      3. Reconciliation of Net Income and Net Cash Flow from Operating Activities
      4. Comparison of Methods
   4. Other Requirements
      1. Gross vs. Net Basis
      2. Discontinued operations
      3. Cash flow per share
   5. Net Reporting by Financial Institutions
   6. Reporting Hedging Transactions
   7. Reporting Foreign Currency Cash Flows
   8. Preparation of the Statement
      1. Example of preparing a statement of cash flows
   9. Statement of Cash Flows for Consolidated Entities
   10. Disclosures
   11. Other Sources (ASC 230-10-60)

Perspective and Issues

Technical Alert

The FASB asked the EITF to address nine statement of cash flows issues. Eight of those issues were resolved in ASU 2016-15, and the ninth was resolved by ASU 2016-18.

ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments

Guidance

The exhibit following lists the issues and how they were resolved.

Exhibit—ASU 2016-15—Summary of Changes

1

Debt prepayment or debt extinguishment cost

Classify as cash outflows ...