{"schema_version":2,"canonical_url":"https://asc.understandingaccounting.org/asc/230/10/#05-overview-and-background","source":"FASB Accounting Standards Codification, Basic View","usage":"Study and research edition. Verify current requirements with the official source. Summaries, enrichment, and tags are machine-generated study aids. Paragraph html preserves source markup; snippet is abbreviated. Pending content is not necessarily effective.","topic":"230","topic_title":"Statement of Cash Flows","subtopic":"230-10","subtopic_title":"Overall","section":{"number":"05","label":"05 Overview and Background","anchor":"05-overview-and-background","is_sec":false,"groups":[{"block":null,"heading":null,"paragraphs":[{"citation":"230-10-05-1","para":"05-1","html":"<div class=\"asc-body\"><div class=\"norm-text\"><span class=\"sfragment\" id=\"sfr_743E6419-6E93-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">The Statement of <a href=\"/glossary/c/#cash\" class=\"term\" title=\"Consistent with common usage, cash includes not only currency on hand but demand deposits with banks or other financial institutions. Cash also includes other kinds of accounts that have the general characteristics of demand deposits in that the customer may deposit additional funds at any time and also effectively may withdraw funds at any time without prior notice or penalty. All charges and credits to those accounts are cash receipts or payments to both the entity owning the account and the bank holding it. For example, a bank's granting of a loan by crediting the proceeds to a customer's demand deposit account is a cash payment by the bank and a cash receipt of the customer when the entry is made.\"><span>Cash</span></a> Flows Topic presents standards for reporting cash flows in general-purpose financial statements. </span></span></div></div>","snippet":"The Statement of Cash Flows Topic presents standards for reporting cash flows in general-purpose financial statements.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:74415406678aeb8cafaac54637c9caeaa0583ba5f67bb2709152fcf3d37caa63","downloaded_from":"2026-09-09T23:11:21.017Z","last_downloaded_at":"2026-09-09T23:11:21.017Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482842","source_sha256":"f8d36a33b0230e66da9f3b3696183b04944daeb34543462a10b3fdc21f17c691"}},{"citation":"230-10-05-2","para":"05-2","html":"<div class=\"asc-body\"><div class=\"norm-text\">Specific guidance is provided on all of the following: <ol class=\"ol-norm\"><li class=\"li-norm\"><span class=\"linum\">a</span><div class=\"p\">Classifying in the statement of cash flows of cash receipts and payments as either <a href=\"/glossary/o/#operating-activities\" class=\"term\" title=\"Operating activities include all transactions and other events that are not defined as investing or financing activities (see paragraphs 230-10-45-12230-10-45-13230-10-45-14230-10-45-15). Operating activities generally involve producing and delivering goods and providing services. Cash flows from operating activities are generally the cash effects of transactions and other events that enter into the determination of net income.\"><span>operating activities</span></a>, <a href=\"/glossary/i/#investing-activities\" class=\"term\" title=\"Investing activities include making and collecting loans and acquiring and disposing of debt or equity instruments and property, plant, and equipment and other productive assets, that is, assets held for or used in the production of goods or services by the entity (other than materials that are part of the entity's inventory). Investing activities exclude acquiring and disposing of certain loans or other debt or equity instruments that are acquired specifically for resale, as discussed in paragraphs 230-10-45-12 and 230-10-45-21.\"><span>investing activities</span></a>, or <a href=\"/glossary/f/#financing-activities\" class=\"term\" title=\"Financing activities include obtaining resources from owners and providing them with a return on, and a return of, their investment; receiving restricted resources that by donor stipulation must be used for long-term purposes; borrowing money and repaying amounts borrowed, or otherwise settling the obligation; and obtaining and paying for other resources obtained from creditors on long-term credit.\"><span>financing activities</span></a></div></li><li class=\"li-norm\"><span class=\"linum\">b</span><div class=\"p\">Applying the direct method and the indirect method of reporting cash flows</div></li><li class=\"li-norm\"><span class=\"linum\">c</span><div class=\"p\">Presenting the required information about noncash investing and financing activity and other events </div></li><li class=\"li-norm\"><span class=\"linum\">d</span><div class=\"p\">Classifying cash receipts and payments related to hedging activities.</div></li></ol></div></div>","snippet":"Specific guidance is provided on all of the following:\n(a) Classifying in the statement of cash flows of cash receipts and payments as either operating activities, investing activities, or financing activities\n(b) Applyi…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:a0982f52b8cfbd5fcb302f2963811bf130719c27803291ae44ed345e06ffe5c2","downloaded_from":"2026-09-09T23:11:21.017Z","last_downloaded_at":"2026-09-09T23:11:21.017Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482842","source_sha256":"f8d36a33b0230e66da9f3b3696183b04944daeb34543462a10b3fdc21f17c691"}},{"citation":"230-10-05-3","para":"05-3","html":"<div class=\"asc-body\"><div class=\"norm-text\">Other Topics, including industry-specific Topics, may have Statement of Cash Flows Subtopics that address the Topic-specific requirements for the statement of cash flows. The guidance in those Subtopics is intended to be incremental to the guidance otherwise established in this Statement of Cash Flows Topic. Topics with incremental Statement of Cash Flows Subtopics are: <ol class=\"ol-norm\"><li class=\"li-norm\"><span class=\"linum\">a</span><div class=\"p\">Foreign Currency Matters, Subtopic <a altsource=\"GUID-1BC00A10-9325-4F1A-A098-414198C239E5.ditamap\" class=\"ditamap\">830-230</a> </div></li><li class=\"li-norm\"><span class=\"linum\">b</span><div class=\"p\"><a href=\"/updates/asu-2014-10/\" class=\"xref\">Subparagraph superseded by Accounting Standards Update No. 2014-10</a>.</div></li><li class=\"li-norm\"><span class=\"linum\">c</span><div class=\"p\">Entertainment—Films, Subtopic <a altsource=\"GUID-F699232C-DB82-4B68-9DF7-EA274F756B52.ditamap\" class=\"ditamap\">926-230</a> </div></li><li class=\"li-norm\"><span class=\"linum\">d</span><div class=\"p\">Financial Services—Depository and Lending, Subtopic <a altsource=\"GUID-161BE58F-C1D5-477A-81D4-24BAB705BA4A.ditamap\" class=\"ditamap\">942-230</a></div></li><li class=\"li-norm\"><span class=\"linum\">e</span><div class=\"p\">Financial Services—Investment Companies, Subtopic <a altsource=\"GUID-2F481777-ECF3-4296-AE7F-EADF56EF9D92.ditamap\" class=\"ditamap\">946-230</a></div></li><li class=\"li-norm\"><span class=\"linum\">f</span><div class=\"p\">Not-for-Profit Entities, Subtopic <a altsource=\"GUID-116D8800-6F44-4EC8-8FF1-F237D0A9DC9D.ditamap\" class=\"ditamap\">958-230</a></div></li><li class=\"li-norm\"><span class=\"linum\">g</span><div class=\"p\">Real Estate—General, Subtopic <a altsource=\"GUID-1912C14B-DA80-4D80-94AB-FFB02246551C.ditamap\" class=\"ditamap\">970-230</a></div></li><li class=\"li-norm\"><span class=\"linum\">h</span><div class=\"p\">Real Estate—Time Sharing Activities, Subtopic <a altsource=\"GUID-3C934A91-6D49-4DA3-9410-C84AF0D0722A.ditamap\" class=\"ditamap\">978-230.</a></div></li></ol></div></div>","snippet":"Other Topics, including industry-specific Topics, may have Statement of Cash Flows Subtopics that address the Topic-specific requirements for the statement of cash flows. The guidance in those Subtopics is intended to be…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:0aaf2bfef0552f2af770290c581da8b8af61e680895db35c4926d2d8d745c01a","downloaded_from":"2026-09-09T23:11:21.017Z","last_downloaded_at":"2026-09-09T23:11:21.017Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482842","source_sha256":"f8d36a33b0230e66da9f3b3696183b04944daeb34543462a10b3fdc21f17c691"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:e17f2af6fd61a574c5f16e8390d5918478463932fd73e8d17c2798de6db5e162","downloaded_from":"2026-09-09T23:11:21.017Z","last_downloaded_at":"2026-09-09T23:11:21.017Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482842","source_sha256":"f8d36a33b0230e66da9f3b3696183b04944daeb34543462a10b3fdc21f17c691"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:8ec15521d7ef0eba281869e2b8c02755f1c5dca0c16fd226c15977814e8be43b","downloaded_from":"2026-09-09T23:11:21.017Z","last_downloaded_at":"2026-09-09T23:11:21.017Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482842","source_sha256":"f8d36a33b0230e66da9f3b3696183b04944daeb34543462a10b3fdc21f17c691"}},"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:8ec15521d7ef0eba281869e2b8c02755f1c5dca0c16fd226c15977814e8be43b","downloaded_from":"2026-09-09T23:11:21.017Z","last_downloaded_at":"2026-09-09T23:11:21.017Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482842","source_sha256":"f8d36a33b0230e66da9f3b3696183b04944daeb34543462a10b3fdc21f17c691"}}