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
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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
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IAS 7—significant differences with US GAAP