Cash Flow Statements: Classification & Disclosure Issues Webinar

To give CPAs and other financial professionals a review of the purpose of the statement of cash flows, with an emphasis on statement of cash flow classification and disclosure issues.

• Usefulness & Limitations of the Statement of Cash Flows
• Classification of Cash Flows
• Public Company Restatements
• Bank & Book Overdrafts
• Discontinued Operations & Reporting in Statement of Cash Flows
• Reconciliation of Net Income to Net Cash Flows Provided by Operating Activities
• Cash Flow Supplemental Disclosures on Non-Cash Investing & Financing Activities
• Classification Examples
• Foreign Currency Cash Flows
• SEC Comment Letters
• Business Combinations
• Non-Monetary Exchanges
• Sale & Leaseback Transactions
• Interim Reporting
• Recommendations for Preparing the Statement of Cash Flows in an Effective, Accurate & Timely Manner
• Significant Differences Between US GAAP ASC 230 & IFRS 7
• Right-of-Use Assets
• Presenting Cash Flows Related to Discontinued Operations
• Contingent Consideration in a Business Combination

To give CPAs and other financial professionals a review of the purpose of the statement of cash flows, with an emphasis on statement of cash flow classification and disclosure issues.

DETAILED LEARNING OBJECTIVES

• Identify the financial statement least affected by estimates and measurement uncertainty

• Recognize the information that the statement of cash flows is least suited to evaluate

• Distinguish limitations of the statement of cash flows from its analytical benefits

• Identify the authoritative accounting guidance governing the statement of cash flows

• Recognize when an entity must present a statement of cash flows

• Identify the required classifications of cash flows

• Recognize the permitted methods for presenting operating cash flows

• Identify the characteristics and limitations of the indirect method

• Recognize presentation and disclosure requirements for the statement of cash flows

• Determine when investing and financing cash flows must be reported on a gross basis

• Identify when investing and financing cash flows may qualify for net presentation

• Determine whether an investment qualifies as a cash equivalent

• Classify a legally restricted compensating balance

• Identify the statement of cash flows requirements for restricted cash under ASU 2016-18

• Determine the appropriate balance-sheet classification of a compensating balance

• Distinguish investing cash outflows from financing cash outflows

• Distinguish investing cash inflows from financing cash inflows

• Apply the default classification for cash flows that do not meet the definitions of investing or financing activities

• Recognize how financing activities provide information about future claims on an entity’s cash flows

• Classify the principal and interest portions of finance lease payments

• Classify operating lease payments made by a lessee

• Classify lease payments received by a lessor

• Apply ASU 2019-01 to principal payments received by certain lessors within the scope of ASC 942

• Recognize common causes of errors in applying ASC Topic 230

• Identify circumstances that may result in cash-flow statement restatements

• Determine the appropriate balance-sheet classification of a bank overdraft

• Classify bank-overdraft activity under US GAAP

• Identify the criteria for reporting a disposal as a discontinued operation

• Determine whether a business-component disposal qualifies as a discontinued operation

• Classify severance payments and pension-plan asset reversions associated with a discontinued operation

• Classify cash proceeds from the sale of a discontinued operation

• Identify adjustments used to reconcile net income to net cash provided by operating activities

• Determine the treatment of ordinary dividends received from equity investments accounted for at fair value

• Identify the permitted formats for supplemental cash-flow disclosures

• Distinguish noncash investing and financing disclosures from supplemental information about cash paid or received

• Identify transactions requiring disclosure as noncash investing or financing activities

• Determine the cash-flow treatment of transactions affecting only stockholders’ equity

• Apply ASU 2016-15 to proceeds received from insurance claim settlements

• Apply appropriate exchange rates to foreign-currency cash flows

• Recognize SEC concerns regarding the preparation of the statement of cash flows

• Identify SEC expectations for management’s discussion and analysis of material changes in cash flows

• Classify cash flows from purchases and sales of productive assets

• Classify business-combination transaction costs under ASC 805

• Determine the treatment of fair-value adjustments to contingent consideration under the indirect method

• Classify employer contributions to pension plans

• Classify insurance reimbursements involving business interruption and property damage

• Classify payments used to settle equity-classified share-based payment awards

• Classify payments used to settle liability-classified share-based payment awards

• Apply SEC reporting thresholds to investing and financing cash flows in condensed interim financial statements

• Identify differences between IAS 7 and US GAAP requirements for the statement of cash flows

• Usefulness & Limitations of the Statement of Cash Flows
• Classification of Cash Flows
• Public Company Restatements
• Bank & Book Overdrafts
• Discontinued Operations & Reporting in Statement of Cash Flows
• Reconciliation of Net Income to Net Cash Flows Provided by Operating Activities
• Cash Flow Supplemental Disclosures on Non-Cash Investing & Financing Activities
• Classification Examples
• Foreign Currency Cash Flows
• SEC Comment Letters
• Business Combinations
• Non-Monetary Exchanges
• Sale & Leaseback Transactions
• Interim Reporting
• Recommendations for Preparing the Statement of Cash Flows in an Effective, Accurate & Timely Manner
• Significant Differences Between US GAAP ASC 230 & IFRS 7
• Right-of-Use Assets
• Presenting Cash Flows Related to Discontinued Operations
• Contingent Consideration in a Business Combination