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Proposed Changes to Cash Flow Presentation Issued

The proposed Accounting Standards Update, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments, was recently issued by the Financial Accounting Standards Board. Seeking to reduce the current diversity in practice in the presentation and classification of certain cash receipts and cash payments under Topic 230 and other Topics, the proposal addresses the following cash flow issues:

  • Debt Prepayment or Debt Extinguishment Costs
  • Settlement of Zero-Coupon Bonds
  • 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
  • Separately Identifiable Cash Flows and Application of the Predominance Principle

Comments on the proposal are due Tuesday, March 29th.

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