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ARTICLE · 18 OCTOBER 2016

Mission Accomplished: FASB Finalizes The Cash Flow Project

Brown Smith Wallace
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On August 26, the FASB published an update to U.S. GAAP that aims to improve and clarify eight parts of existing guidance on cash flow statement presentation and classification.

United StatesAccounting and Audit
Daniel J. Ward, CPA
Daniel J. Ward, CPA
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On August 26, the Financial Accounting Standards Board (FASB) published an update to U.S. Generally Accepted Accounting Principles (GAAP) that aims to improve and clarify eight parts of existing guidance on cash flow statement presentation and classification. The update addresses some frequently asked questions about what is considered a complex area of accounting.

A Need for Clarity

Current U.S. GAAP in Topic 230, Statement of Cash Flows, provides guidance on classifying and presenting cash receipts and payments into the following categories:

  • Operating activities (such as net increases or decreases in accounts receivable),
  • Investing activities (such as cash expenditures for equipment), or

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