Wiley GAAP 2024

6ASC 230 STATEMENT OF CASH FLOWS

• Perspective and Issues
  • Subtopic
  • Scope and Scope Exceptions
• Definitions of Terms
• Concepts, Rules, and Examples
  • Cash Focus
  • Classification of Cash Receipts and Disbursements
  • Operating Activities Presentation
    • The Direct Method
    • The Indirect Method
    • Reconciliation of Net Income and Net Cash Flow from Operating Activities
    • Comparison of Methods
  • Other Requirements
    • Gross versus Net Basis
    • Discontinued Operations
    • Cash Flow per Share
  • Net Reporting by Financial Institutions
  • Reporting Hedging Transactions
  • Reporting Foreign Currency Cash Flows
  • Preparation of the Statement—Comprehensive Example
    • Objective
    • Direct Method
    • Indirect Method
    • Using T-Accounts
    • Example of Preparing a Statement of Cash Flows
  • Statement of Cash Flows for Consolidated Entities
  • Disclosures
  • Practice Alert
  • Other Sources (ASC 230-10-60)

PERSPECTIVE AND ISSUES

Subtopic

ASC 230, Statement of Cash Flows, contains one subtopic:

• ASC 230-10, Overall, that establishes standards for cash flow reporting in general purpose financial statements.

Scope and Scope Exceptions

A statement of cash flows is a required part of a complete set of financial statements for business enterprises and not-for-profit organizations. The following are not required to present a statement of cash flows:

• Defined pension plans that present financial information under Topic 960
• Other employee plans that present information similar to ASC 960 (ASC 962-205-45-9)
• A common trust fund, variable annuity ...