# ASC 230-10-05: Statement of Cash Flows — Overall — 05 Overview and Background Source: FASB Accounting Standards Codification, Basic View [Read online](https://asc.understandingaccounting.org/asc/230/10/#05-overview-and-background) 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. Tables and mathematical or amendment markup are retained as HTML where Markdown would lose structure. Source downloaded (UTC): 2026-09-09T23:11:21.017Z to 2026-09-09T23:11:21.017Z Record version: sha256:8ec15521d7ef0eba281869e2b8c02755f1c5dca0c16fd226c15977814e8be43b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 230-10-05: 05 Overview and Background [Read section](https://asc.understandingaccounting.org/asc/230/10/#05-overview-and-background) SEC content: no ##### [230-10-05-1](https://asc.understandingaccounting.org/asc/230/10/#230-10-05-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:11:21.017Z to 2026-09-09T23:11:21.017Z Record version: sha256:74415406678aeb8cafaac54637c9caeaa0583ba5f67bb2709152fcf3d37caa63 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The Statement of [Cash](https://asc.understandingaccounting.org/glossary/c/#cash "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.") Flows Topic presents standards for reporting cash flows in general-purpose financial statements. ##### [230-10-05-2](https://asc.understandingaccounting.org/asc/230/10/#230-10-05-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:11:21.017Z to 2026-09-09T23:11:21.017Z Record version: sha256:a0982f52b8cfbd5fcb302f2963811bf130719c27803291ae44ed345e06ffe5c2 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Specific guidance is provided on all of the following: 1. a Classifying in the statement of cash flows of cash receipts and payments as either [operating activities](https://asc.understandingaccounting.org/glossary/o/#operating-activities "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."), [investing activities](https://asc.understandingaccounting.org/glossary/i/#investing-activities "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."), or [financing activities](https://asc.understandingaccounting.org/glossary/f/#financing-activities "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.") 2. b Applying the direct method and the indirect method of reporting cash flows 3. c Presenting the required information about noncash investing and financing activity and other events 4. d Classifying cash receipts and payments related to hedging activities. ##### [230-10-05-3](https://asc.understandingaccounting.org/asc/230/10/#230-10-05-3) Pending content: no Source downloaded (UTC): 2026-09-09T23:11:21.017Z to 2026-09-09T23:11:21.017Z Record version: sha256:0aaf2bfef0552f2af770290c581da8b8af61e680895db35c4926d2d8d745c01a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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: 1. a Foreign Currency Matters, Subtopic 830-230 2. b [Subparagraph superseded by Accounting Standards Update No. 2014-10](https://asc.understandingaccounting.org/updates/asu-2014-10/). 3. c Entertainment—Films, Subtopic 926-230 4. d Financial Services—Depository and Lending, Subtopic 942-230 5. e Financial Services—Investment Companies, Subtopic 946-230 6. f Not-for-Profit Entities, Subtopic 958-230 7. g Real Estate—General, Subtopic 970-230 8. h Real Estate—Time Sharing Activities, Subtopic 978-230.