Cash Flow Statements: Classification & Disclosure Issues Self-Study Webinar (10 Hours)

Overview: 

The reporting requirements for cash flow statements can be tricky and are often a reason for restatements of previously issued financial statements. By taking this self-study webinar, you will:

  • Understand the purpose of the statement of cash flows and why it is useful
  • Learn the cash flow reporting requirements of ASC 230, Statement of Cash Flows (previously FAS 95) and related standards
  • Be able to identify the 3 major classifications of cash flows and what needs to be disclosed as supplemental information
  • Review significant differences between US GAAP and IFRS
  • Evaluate best practices for preparing the statement of cash flows accurately and timely
Objective: 

Review recent changes to US GAAP impacting the statement of cash flows and be able to classify various transactions for interim and annual reporting for public and private companies.

Emphasis: 
  • Review of authoritative pronouncements
  • Summary of recent changes to US GAAP and impact on the statement of cash flows classification and disclosure: ASU 2016-09, ASU 2016-15 and ASU 2016-18
  • Public company restatements
  • Key provisions of ASC 230, Statement of Cash Flows
  • Gross and net cash flows presentation
  • Cash and cash equivalents
  • Compensating bank balances
  • Purpose and usefulness of the statement of cash flows
  • SEC remarks
  • ASU 2014-02—Accounting for Goodwill Elections for Private Companies
  • ASU 2014-08—Reporting Discontinued Operations and Disclosures
  • ASC 842 Leases
  • Direct vs. indirect method of preparing the statement of cash flows
  • Classification of cash flow transactions
  • Reconciliation of net income to net cash provided by operating activities
  • Cash flow supplemental disclosures
  • Foreign currency cash flows
  • Business combinations
  • Interim reporting
  • Best practices for preparing the statement of cash flows effectively, accurately and timely
  • IAS 7—significant differences with US GAAP

Identify the role of the statement of cash flows under both GAAP and IFRS

Identify the primary categories of cash flow activities within the statement of cash flows

Recognize the relative error rate in the preparation of the statement of cash flows

Identify the alternative approaches to the preparation of the statement of cash flows under Topic 230

Identify the primary characteristics of a cash equivalent

Recognize the statement of cash flows implications of the effect of exchange rate changes on cash balances held in foreign currencies

Identify those investing or financing activities required to be reported as gross

Identify the statement of cash flows implications of compensating bank balances and bank overdrafts

Recognize the disclosure implications of compensating bank balances

Recognize the balance sheet implications of compensating bank balances

Identify the relative difficulty of management manipulation of the cash flow statement

Identify the most common errors with the preparation of the statement of cash flows according to the SEC

Identify the accounting implications of specified recent guidance promulgated by the FASB

Recognize the treatment of cash flows relating to unusual or infrequently occurring transactions of a discontinued operation in the statement of cash flows

Recognize the treatment of cash flows relating to cash received upon the sale of a discontinued operation

Identify a lessee’s treatment of finance lease payments in the statement of cash flows

Identify a lessee’s treatment of operating lease payments in the statement of cash flows

Recognize the alternative methods for reporting operating activities within the statement of cash flows

Recognize the method for reporting operating activities within the statement of cash flows primarily used in practice

Recognize common cash flows from investing activities

Recognize common cash flows from financing activities

Identify common examples of adjustments to reconcile net income to cash flow from operating activities

Identify formatting alternatives to reporting supplemental cash flow disclosures

Identify common examples of required supplemental cash flow disclosures

Identify common examples of required noncash investing and financing activities disclosures

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Price: 
$399.00
Prerequisite: 

Basic knowledge of financial accounting and reporting.

Preparation: 

No advance preparation required.

Level of Knowledge: 

Intermediate.

CPE Credit: 
10.00
NASBA Field of Study: 
Accounting