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FASB Ratifies EITF Issue on Statement of Cash Flows

At its June 29 Board meeting, the Financial Accounting Standards Board (“FASB”) ratified the consensus reached at its June 10 Emerging Issues Task Force meeting regarding Issue No. 15-F, “Statement of Cash Flows: Classification of Certain Cash Receipts and Cash Payments.” In particular, the FASB reached a consensus on the following issues:

  • Debt Prepayment or Debt Extinguishment Costs
  • Settlement of Zero-Coupon Debt Instruments and Other Debt Instruments with Insignificant Coupon Interest Rates
  • Contingent Consideration Payments Made after a Business Combination
  • Proceeds from the Settlement of Insurance Claims
  • Proceeds from the Settlement of Corporate-Owned Life Insurance Policies, including Bank-Owned Life Insurance Policies
  • Distributions Received from Equity Method Investees
  • Beneficial Interests in Securitization Transactions
  • Application of the Predominance Principle

Staff members were instructed to draft an Accounting Standards Update based on the consensus reached. More on the June 29 meeting is available on the FASB website.

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