Cash Flow Statements: Classification & Disclosure Issues

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 seminar, 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
  • 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
     
Bottom
Prerequisite: 

Basic knowledge of financial accounting and reporting.

Preparation: 

No advance preparation required.

Level of Knowledge: 

Intermediate.

CPE Credit: 
8.00
NASBA Field of Study: 
Accounting