Wiley GAAP: Financial Statement Disclosure Manual. Joanne M. Flood
implementation of ASU 2016‐13, this bullet point is superseded.
5 5 Ibid.
6 6 This bulleted item is effective upon implementation of ASU 2018‐02, Financial Services—Insurance (Topic 944): Targeted Improvements to the Accounting for Long‐Duration Contracts.
7 7 Ibid.
8 8 Life insurers should exclude from amounts reclassified out of accumulated other comprehensive income changes in unrealized gains and losses on available‐for‐sale debt securities associated with direct adjustments made to policy liabilities necessary to reflect these balances as if such unrealized gains and losses were realized. (ASC 220‐10‐55‐15C)
9 9 Ibid.
10 10 Ibid.
6 ASC 230, STATEMENT OF CASH FLOWS
1 Authoritative Literature Subtopic Scope and Scope Exceptions
2 Practice Alert Information People Timing
3 Presentation and Disclosure Requirements Objective Cash and Cash Equivalents Restrictions on Cash and Cash Equivalents Gross versus Net Basis Classification of Cash Receipts and Disbursements Operating Activities—Cash Inflows Operating Activities—Cash Outflows Investing Activities—Cash Inflows Investing Activities—Cash Outflows Financing Activities—Cash Inflows Financing Activities—Cash Outflows Other Issues Related to Classification of Cash Flows Acquisition and Sales of Trading Debt Securities Insurance Proceeds and Payments Distributions Received from Equity Method Investees More Than One Class of Cash Flows Discontinued Operations Noncash Investing and Financing Activities Reporting Hedging Transactions Other Topics with Cash Flow Subtopics Format of the Statement of Cash Flows The Direct Method The Indirect Method Reconciliation of Net Income and Net Cash Flow from Operating Activities
4 Presentation and Disclosure Examples Example 6.1: Statement of Cash Flows (without Details of Operating Activities) Operating Activities Presentation Example 6.2: Operating Activities: Formats for Direct and Indirect Methods Example 6.3: Statement of Cash Consolidated Entities Example 6.4: Cash and Cash Equivalents—Accounting Policy Example 6.5: Accounting Policy for Cash and Cash Equivalents, Including Details Example 6.6: Amount of Interest and Income Taxes Paid and Noncash Investing and Financing Activities Example 6.7: Amount of Interest and Income Taxes Paid and Noncash Investing and Financing Activities Example 6.8: Nature of Restrictions on Cash and Cash Equivalents Restricted Cash Example 6.9: Nature of Restrictions on Cash and Cash Equivalents with Internal Reference Restricted Cash Example 6.10: Disclosure in Tabular Format—Restricted Cash Presented in More Than One Line Item on the Balance Sheet
AUTHORITATIVE LITERATURE
Unlike other statements, the statement of cash flows is based on the cash basis of accounting rather than on the accrual basis. Therefore, all bank account debits and credits that are unrestricted demand deposits should be reported in the statement as inflows and outflows of cash. Reporting cash flows involves no estimated allocations and few judgments except regarding classification in the statement.
Cash flows are recognized in the statement of cash flows in the period they occur. However, entities must disclose in the statement noncash investing and financing activities. (FASB Concepts Statement [CON] No. 5)
Subtopic
ASC 230, Statement of Cash Flows, contains one Subtopic:
ASC 230‐10, Overall
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