Wiley GAAP 2014: Interpretation and Application of Generally Accepted Accounting Principles

7   ASC 230 STATEMENT OF CASH FLOWS

Perspective and Issues

Subtopic

Scope and Scope Exceptions

Overview

Technical Alert – ASU 2012-05

Definitions of Terms

Concepts, Rules, and Examples

Cash Focus

Classification of Cash Receipts and Disbursements

Operating Activities Presentation

Direct vs. indirect

Other Requirements

Gross vs. net basis

Extraordinary items and discontinued operations

Cash flow per share

Entities Exempt from Providing a Statement of Cash Flows

Net Reporting by Financial Institutions

Not-for-Profit Organizations

Reporting Hedging Transactions

Reporting Foreign Currency Cash Flows

Preparation of the Statement

Example of preparing a statement of cash flows

Statement of Cash Flows for Consolidated Entities

Disclosures

Other Sources

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. Only defined benefit plans, certain other employee benefit plans, and highly liquid investment companies that meet specified conditions are not required to present the statement. (ASC 230-10-15)

Overview

The primary purpose of the statement of cash flows is to provide information about cash receipts and cash payments of an entity during a period. A secondary purpose is ...