New Cash Flow Statement Classification Guidance Issued
The Financial Accounting Standards Board has issued new guidance to address how specific cash receipts and payments are classified in cash flow statements. The amendments in Accounting Standards Update No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments, cover the following cash flow issues: Debt prepayment or debt extinguishment costs Settlement of zero-coupon debt instruments or other debt instruments with coupon interest rates that are insignificant concerning the effective interest rate of the borrowing Contingent consideration payments made following a business combination Proceeds from the settlement of insurance claims Proceeds from the settlement. Read More.
Topics: Business Combination, Debt Extinguishment Costs, Debt Prepayment, Equity method accounting, FASB, Insurance Claims, Securitization Transactions, Statement of Cash Flows (Topic 230), Zero-Coupon Debt Instruments