Wiley GAAP 2021, 2nd Edition

6ASC 230 STATEMENT OF CASH FLOWS

1. Perspective and Issues
   1. Technical Alert
   2. Subtopic
   3. Scope and Scope Exceptions
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 versus 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—Comprehensive Example
      1. Objective
      2. Direct Method
      3. Indirect Method
      4. Using T‐Accounts
      5. 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

In August 2018, the FASB issued ASC 2018‐15, Intangibles—Goodwill and Other Internal‐Use Software (Topic 350‐40): Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract. This ASU requires an entity to classify payments made for capitalized implementation costs in the same category as payments made for fees associated with the hosting element. This category is typically cash flows from operating activities. (ASC 350‐40‐45‐3) The ASU is effective:

• For public business entities—fiscal years beginning after December 15, 2019, and interim periods within ...