asu 2016-18 statement of cash flows - restricted cash
TRANSCRIPT
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GUIDANCE ABOUT RESTRICTED CASH IN
CASH FLOW STATEMENTSASU 2016-18
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WHY THE NEW STANDARD?
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DIVERSITY EXISTS IN THE
CLASSIFICATION AND
PRESENTATION OF CHANGES IN
RESTRICTED CASH
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ENTITIES CLASSIFY TRANSFERS BETWEEN
CASH AND RESTRICTED CASH AS OPERATING,
INVESTING, OR FINANCING ACTIVITIES, OR AS A
COMBINATION OF THOSE ACTIVITIES
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THE DIVERSITY CREATES CONFUSION
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WHO IS AFFECTED?
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THE AMENDMENTS IN THIS UPDATE
APPLY TO ALL ENTITIES THAT HAVE RESTRICTED CASH
OR RESTRICTED CASH EQUIVALENTS AND ARE
REQUIRED TO PRESENT A STATEMENT OF CASH FLOWS
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WHAT ARE THE MAIN PROVISIONS?
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REQUIRES THAT A STATEMENT OF CASH FLOWS
EXPLAIN THE CHANGE DURING THE PERIOD IN THE
TOTAL OF CASH, CASH EQUIVALENTS, AND AMOUNTS
GENERALLY DESCRIBED AS RESTRICTED CASH OR
RESTRICTED CASH EQUIVALENTS
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RESTRICTED CASH IS INCLUDED IN THE DEFINITION
OF CASH
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WHEN EFFECTIVE?
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PUBLIC COMPANIES: YEARS BEGINNING AFTER
DECEMBER 15, 2017
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OTHER ENTITIES: YEARS BEGINNING AFTER
DECEMBER 15, 2018
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CAN BE EARLY IMPLEMENTED
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DISCLOSURES
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THE NATURE OF
RESTRICTIONS ON ITS CASH AND
CASH EQUIVALENTS
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ON THE FACE OF THE CASH FLOW STATEMENT OR
IN THE NOTES, A DETAIL OF
BALANCE SHEET LINES COMPRISING THE
YEAR-END CASH TOTAL
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Sample Disclosure
Cash and cash equivalents $12,500
Restricted cash - short term 3,000
Restricted cash - long term 10,000
Total cash, cash equivalents and restricted cash
Total per Cash Flow Statement
$25,500
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CHARLES HALL, CPA, CFE, MACC
CPA-Scribo.com