# ASC 230-10-45: Statement of Cash Flows — Overall — 45 Other Presentation Matters Source: FASB Accounting Standards Codification, Basic View [Read online](https://asc.understandingaccounting.org/asc/230/10/#45-other-presentation-matters) 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): 2026-09-09T23:11:33.323Z to 2026-09-09T23:11:33.323Z Record version: sha256:bc8dff4ece4998e49aab8f0b243179d40115952a5bbf94a1aa455a7ab71e82ce Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 230-10-45: 45 Other Presentation Matters [Read section](https://asc.understandingaccounting.org/asc/230/10/#45-other-presentation-matters) SEC content: no #### Form and Content ##### [230-10-45-1](https://asc.understandingaccounting.org/asc/230/10/#230-10-45-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:11:33.323Z to 2026-09-09T23:11:33.323Z Record version: sha256:a63aabaaba1f4fdb526993d909f0ca5a02ed7ef5c611c3792bb3480233bd0010 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. A 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 shall report the cash effects during a period of an entity's operations, its investing transactions, and its financing transactions. ##### [230-10-45-2](https://asc.understandingaccounting.org/asc/230/10/#230-10-45-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:11:33.323Z to 2026-09-09T23:11:33.323Z Record version: sha256:e2b57a2082d23fc0c572a6741a6ed63c0c4dfe00af64ad2a49333467e17d3602 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. A reconciliation of net income and net cash flow from [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."), which generally provides information about the net effects of operating transactions and other events that affect net income and operating cash flows in different periods, also shall be provided. ##### [230-10-45-3](https://asc.understandingaccounting.org/asc/230/10/#230-10-45-3) Pending content: no Source downloaded (UTC): 2026-09-09T23:11:33.323Z to 2026-09-09T23:11:33.323Z Record version: sha256:728b2f585259bff0ab0a571148b97ded9238c5ec48fccb8061385325b4a9d7c8 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Financial statements shall not report an amount of cash flow per share. Neither cash flow nor any component of it is an alternative to net income as an indicator of an entity's performance, as reporting per-share amounts might imply. Reporting a contractually determined per-unit amount, such as a per unit amount of cash flow distributable under the terms of a partnership agreement or other agreement between an entity and its owners, is not the same as reporting a cash flow per-share amount intended to provide information useful to all investors and creditors and thus is not precluded by this Subtopic. ##### [230-10-45-4](https://asc.understandingaccounting.org/asc/230/10/#230-10-45-4) Pending content: no Source downloaded (UTC): 2026-09-09T23:11:33.323Z to 2026-09-09T23:11:33.323Z Record version: sha256:e84fa39a55e5e3a972cea61fdda4a77f88a2a2a7737d20e61b721bf59b4af05b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. A statement of cash flows shall explain the change during the period in the total of cash, [cash equivalents](https://asc.understandingaccounting.org/glossary/c/#cash-equivalents "Cash equivalents are short-term, highly liquid investments that have both of the following characteristics: Readily convertible to known amounts of cash So near their maturity that they present insignificant risk of changes in value because of changes in interest rates. Generally, only investments with original maturities of three months or less qualify under that definition. Original maturity means original maturity to the entity holding the investment. For example, both a three-month U.S. Treasury bill and a three-year U.S. Treasury note purchased three months from maturity qualify as cash equivalents. However, a Treasury note purchased three years ago does not become a cash equivalent when its remaining maturity is three months. Examples of items commonly considered to be cash equivalents are Treasury bills, commercial paper, money market funds, and federal funds sold (for an entity with banking operations)."), and amounts generally described as restricted cash or restricted cash equivalents. The statement shall use descriptive terms such as cash or cash and cash equivalents rather than ambiguous terms such as funds. When cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents are presented in more than one line item within the statement of financial position, an entity shall provide the disclosures required in paragraph [230-10-50-8](https://asc.understandingaccounting.org/asc/230/10/#230-10-50-8). ##### [230-10-45-5](https://asc.understandingaccounting.org/asc/230/10/#230-10-45-5) Pending content: no Source downloaded (UTC): 2026-09-09T23:11:33.323Z to 2026-09-09T23:11:33.323Z Record version: sha256:7cf4254c66494b2727cbf482cf70773bdcf22c4c4bde7de4216acac955219df9 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Cash purchases and sales of items commonly considered to be cash equivalents generally are part of the entity's cash management activities rather than part of its operating, investing, and [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."), and details of those transactions need not be reported in a statement of cash flows. In addition, transfers between cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents are not part of the entity's operating, investing, and financing activities, and details of those transfers are not reported as cash flow activities in the statement of cash flows. ##### [230-10-45-6](https://asc.understandingaccounting.org/asc/230/10/#230-10-45-6) Pending content: no Source downloaded (UTC): 2026-09-09T23:11:33.323Z to 2026-09-09T23:11:33.323Z Record version: sha256:0b90d76e2042ec4e2dc8c21586e31ebad23cfa188d027b4b6a000021f623fcc1 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Not all investments that qualify are required to be treated as cash equivalents. An entity shall establish a policy concerning which short-term, highly liquid investments that satisfy the definition of cash equivalents are treated as cash equivalents. For example, an entity having banking operations might decide that all investments that qualify except for those purchased for its trading account will be treated as cash equivalents, while an entity whose operations consist largely of investing in short-term, highly liquid investments might decide that all those items will be treated as investments rather than cash equivalents. ##### [230-10-45-7](https://asc.understandingaccounting.org/asc/230/10/#230-10-45-7) Pending content: no Source downloaded (UTC): 2026-09-09T23:11:33.323Z to 2026-09-09T23:11:33.323Z Record version: sha256:40539fd22eb45f19f5d6c921442fdf236f22eb13643fa8668e049049416dfa87 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Generally, information about the gross amounts of cash receipts and cash payments during a period is more relevant than information about the net amounts of cash receipts and payments. However, the net amount of related receipts and payments provides sufficient information not only for cash equivalents, as noted in paragraph [230-10-45-5](https://asc.understandingaccounting.org/asc/230/10/#230-10-45-5), but also for certain other classes of cash flows specified in paragraphs [230-10-45-8 through 45-9](https://asc.understandingaccounting.org/asc/230/10/#230-10-45-8) and paragraph [230-10-45-28](https://asc.understandingaccounting.org/asc/230/10/#230-10-45-28). ##### [230-10-45-8](https://asc.understandingaccounting.org/asc/230/10/#230-10-45-8) Pending content: no Source downloaded (UTC): 2026-09-09T23:11:33.323Z to 2026-09-09T23:11:33.323Z Record version: sha256:896f9ec401842d9dab467051ba9b0946c787512337e37da5f9464c41de41ea16 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. For certain items, the turnover is quick, the amounts are large, and the maturities are short. For certain other items, such as demand deposits of a bank and customer accounts payable of a broker-dealer, the entity is substantively holding or disbursing cash on behalf of its customers. Only the net changes during the period in assets and liabilities with those characteristics need be reported because knowledge of the gross cash receipts and payments related to them may not be necessary to understand the entity's operating, investing, and financing activities. ##### [230-10-45-9](https://asc.understandingaccounting.org/asc/230/10/#230-10-45-9) Pending content: no Source downloaded (UTC): 2026-09-09T23:11:33.323Z to 2026-09-09T23:11:33.323Z Record version: sha256:4fe6d5286ae48bc78feac7975fec61a4376d86bd56a066466d6685322d75635b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Providing that the original maturity of the asset or liability is three months or less, cash receipts and payments pertaining to any of the following qualify for net reporting for the reasons stated in the preceding paragraph: 1. a Investments (other than cash equivalents) 2. b Loans receivable 3. c Debt. For purposes of this paragraph, amounts due on demand are considered to have maturities of three months or less. For convenience, credit card receivables of financial services operations—generally, receivables resulting from cardholder charges that may, at the cardholder's option, be paid in full when first billed, usually within one month, without incurring interest charges and that do not stem from the entity's sale of goods or services—also are considered to be loans with original maturities of three months or less. #### Classification ##### [230-10-45-10](https://asc.understandingaccounting.org/asc/230/10/#230-10-45-10) Pending content: no Source downloaded (UTC): 2026-09-09T23:11:33.323Z to 2026-09-09T23:11:33.323Z Record version: sha256:2596b84109277982a85e261e6bb261ae1bd83e71d3b9131c83eb718046907c41 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. A statement of cash flows shall classify cash receipts and cash payments as resulting from investing, financing, or operating activities. ##### [230-10-45-11](https://asc.understandingaccounting.org/asc/230/10/#230-10-45-11) Pending content: no Source downloaded (UTC): 2026-09-09T23:11:33.323Z to 2026-09-09T23:11:33.323Z Record version: sha256:23cda495a2019795a8f8e47472c0535d39df47b205ea0a04a806f019b6d020e8 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Cash flows from purchases, sales, and maturities of available-for-sale debt securities shall be classified as cash flows from [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.") and reported gross in the statement of cash flows. ##### [230-10-45-12](https://asc.understandingaccounting.org/asc/230/10/#230-10-45-12) Pending content: no Source downloaded (UTC): 2026-09-09T23:11:33.323Z to 2026-09-09T23:11:33.323Z Record version: sha256:bed31b7d820dd2f18f7919a9ebfb61dd06c616885bfb00233dc287775917c305 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. All of the following are cash inflows from investing activities: 1. a Receipts from collections or sales of loans made by the entity and of other entities' debt instruments (other than cash equivalents, certain debt instruments that are acquired specifically for resale as discussed in paragraph [230-10-45-21](https://asc.understandingaccounting.org/asc/230/10/#230-10-45-21), and certain donated debt instruments received by not-for-profit entities (NFPs) as discussed in paragraph [230-10-45-21A](https://asc.understandingaccounting.org/asc/230/10/#230-10-45-21A)) and collections on a transferor's beneficial interests in a securitization of the transferor's trade receivables 2. b Receipts from sales of equity instruments of other entities (other than certain equity instruments carried in a trading account as described in paragraph [230-10-45-18](https://asc.understandingaccounting.org/asc/230/10/#230-10-45-18)and certain donated equity instruments received by NFPs as discussed in paragraph [230-10-45-21A](https://asc.understandingaccounting.org/asc/230/10/#230-10-45-21A)) and from returns of investment in those instruments 3. c Receipts from sales of property, plant, and equipment and other productive assets 4. d [Subparagraph not used](https://asc.understandingaccounting.org/updates/asu-2016-01/). 5. e Receipts from sales of loans that were not specifically acquired for resale. That is, if loans were acquired as investments, cash receipts from sales of those loans shall be classified as investing cash inflows regardless of a change in the purpose for holding those loans. For purposes of this paragraph, receipts from disposing of loans, debt or equity instruments, or property, plant, and equipment include directly related proceeds of insurance settlements, such as the proceeds of insurance on a building that is damaged or destroyed. ##### [230-10-45-13](https://asc.understandingaccounting.org/asc/230/10/#230-10-45-13) Pending content: no Source downloaded (UTC): 2026-09-09T23:11:33.323Z to 2026-09-09T23:11:33.323Z Record version: sha256:23d605dc6ee64c21dff02de4f40152dfa33c592a47cab8cf3e63b9e5ce755cf9 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. All of the following are cash outflows for investing activities: 1. a Disbursements for loans made by the entity and payments to acquire debt instruments of other entities (other than cash equivalents and certain debt instruments that are acquired specifically for resale as discussed in paragraph [230-10-45-21](https://asc.understandingaccounting.org/asc/230/10/#230-10-45-21)). 2. b Payments to acquire equity instruments of other entities (other than certain equity instruments carried in a trading account as described in paragraph [230-10-45-18](https://asc.understandingaccounting.org/asc/230/10/#230-10-45-18)). 3. c Payments at the time of purchase or soon before or after purchase to acquire property, plant, and equipment and other productive assets, including interest capitalized as part of the cost of those assets. Generally, only advance payments, the down payment, or other amounts paid at the time of purchase or soon before or after purchase of property, plant, and equipment and other productive assets are investing cash outflows. However, incurring directly related debt to the seller is a financing transaction (see paragraphs [230-10-45-14 through 45-15](https://asc.understandingaccounting.org/asc/230/10/#230-10-45-14) ), and subsequent payments of principal on that debt thus are financing cash outflows. 4. d Payments made soon after the acquisition date of a business combination by an acquirer to settle a contingent consideration liability. ##### [230-10-45-14](https://asc.understandingaccounting.org/asc/230/10/#230-10-45-14) Pending content: no Source downloaded (UTC): 2026-09-09T23:11:33.323Z to 2026-09-09T23:11:33.323Z Record version: sha256:a14739f484f3be855a57763423bc83090734fb8bfa3bedf8d0626c51dcda456a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. All of the following are cash inflows from financing activities: 1. a Proceeds from issuing equity instruments 2. b Proceeds from issuing bonds, mortgages, notes, and from other short- or long-term borrowing 3. c Receipts from [contributions](https://asc.understandingaccounting.org/glossary/c/#contribution "An unconditional transfer of cash or other assets, as well as unconditional promises to give, to an entity or a reduction, settlement, or cancellation of its liabilities in a voluntary nonreciprocal transfer by another entity acting other than as an owner. Those characteristics distinguish contributions from:Exchange transactions, which are reciprocal transfers in which each party receives and sacrifices approximately commensurate valueInvestments by owners and distributions to owners, which are nonreciprocal transfers between an entity and its ownersOther nonreciprocal transfers, such as impositions of taxes or legal judgments, fines, and thefts, which are not voluntary transfers. In a contribution transaction, the resource provider often receives value indirectly by providing a societal benefit although that benefit is not considered to be of commensurate value. In an exchange transaction, the potential public benefits are secondary to the potential direct benefits to the resource provider. The term contribution revenue is used to apply to transactions that are part of the entity's ongoing major or central activities (revenues), or are peripheral or incidental to the entity (gains). See also Inherent Contribution and Conditional Contribution.") and investment income that by donor stipulation are restricted for the purposes of acquiring, constructing, or improving property, plant, equipment, or other long-lived assets or establishing or increasing a [donor-restricted endowment fund](https://asc.understandingaccounting.org/glossary/d/#donor-restricted-endowment-fund "An endowment fund that is created by a donor stipulation (donors include other types of contributors, including makers of certain grants) requiring investment of the gift in perpetuity or for a specified term. Some donors or laws may require that a portion of income, gains, or both be added to the gift and invested subject to similar restrictions. The term does not include a Board-Designated Endowment Fund. See Endowment Fund.") 4. d Proceeds received from derivative instruments that include financing elements at inception, whether the proceeds were received at inception or over the term of the derivative instrument, other than a financing element inherently included in an at-the-market derivative instrument with no prepayments 5. e [Subparagraph superseded by Accounting Standards Update No. 2016-09](https://asc.understandingaccounting.org/updates/asu-2016-09/). ##### [230-10-45-15](https://asc.understandingaccounting.org/asc/230/10/#230-10-45-15) Pending content: no Source downloaded (UTC): 2026-09-09T23:11:33.323Z to 2026-09-09T23:11:33.323Z Record version: sha256:5a8818bd0c8ecd8e3d05ebbcd8edee715744ace1312378c46714fe26e9fbcd9d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. All of the following are cash outflows for financing activities: 1. a Payments of dividends or other distributions to owners, including outlays to reacquire the entity's equity instruments. Cash paid to a tax authority by a grantor when withholding shares from a grantee's award for tax-withholding purposes shall be considered an outlay to reacquire the entity's equity instruments. 2. b Repayments of amounts borrowed, including the portion of the repayments made to settle zero-coupon debt instruments that is attributable to the principal or the portion of the repayments made to settle other debt instruments with coupon interest rates that are insignificant in relation to the [effective interest rate](https://asc.understandingaccounting.org/glossary/e/#effective-interest-rate "The rate of return implicit in the financial asset, that is, the contractual interest rate adjusted for any net deferred fees or costs, premium, or discount existing at the origination or acquisition of the financial asset. For purchased financial assets with credit deterioration, however, to decouple interest income from credit loss recognition, the premium or discount at acquisition excludes the discount embedded in the purchase price that is attributable to the acquirer's assessment of credit losses at the date of acquisition.") of the borrowing that is attributable to the principal. 3. c Other principal payments to creditors who have extended long-term credit. See paragraph [230-10-45-13(c)](https://asc.understandingaccounting.org/asc/230/10/#230-10-45-13), which indicates that most principal payments on seller-financed debt directly related to a purchase of property, plant, and equipment or other productive assets are financing cash outflows. 4. d Distributions to counterparties of derivative instruments that include financing elements at inception, other than a financing element inherently included in an at-the-market derivative instrument with no prepayments. The distributions may be either at inception or over the term of the derivative instrument. 5. e Payments for debt issue costs. 6. f Payments, or the portion of the payments, not made soon after the acquisition date of a business combination by an acquirer to settle a contingent consideration liability up to the amount of the contingent consideration liability recognized at the acquisition date, including measurement-period adjustments, less any amounts paid soon after the acquisition date to settle the contingent consideration liability. See also paragraph [230-10-45-17(ee)](https://asc.understandingaccounting.org/asc/230/10/#230-10-45-17). 7. g Payments for debt prepayment or debt extinguishment costs, including third-party costs, premiums paid, and other fees paid to lenders that are directly related to the debt prepayment or debt extinguishment, excluding accrued interest. ##### [230-10-45-16](https://asc.understandingaccounting.org/asc/230/10/#230-10-45-16) Pending content: no Source downloaded (UTC): 2026-09-09T23:11:33.323Z to 2026-09-09T23:11:33.323Z Record version: sha256:792a9ac56cf4953cf54aa973b52bfbaf76abba78e0bee22b22abd9dca4f8f1e0 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. All of the following are cash inflows from operating activities: 1. a Cash receipts from sales of goods or services, including receipts from collection or sale of accounts and both short- and long-term notes receivable from customers arising from those sales. The term _goods_ includes certain loans and other debt and equity instruments of other entities that are acquired specifically for resale, as discussed in paragraph [230-10-45-21](https://asc.understandingaccounting.org/asc/230/10/#230-10-45-21). 2. b Cash receipts from returns on loans, other debt instruments of other entities, and equity securities—interest and dividends. 3. c All other cash receipts that do not stem from transactions defined as investing or financing activities, such as amounts received to settle lawsuits and refunds from suppliers. ##### [230-10-45-17](https://asc.understandingaccounting.org/asc/230/10/#230-10-45-17) Pending content: no Source downloaded (UTC): 2026-09-09T23:11:33.323Z to 2026-09-09T23:11:33.323Z Record version: sha256:bfd3f1717c472581d48db982375b11589508d85119060deec5ae132a5e1d93bb Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. All of the following are cash outflows for operating activities: 1. a Cash payments to acquire materials for manufacture or goods for resale, including principal payments on accounts and both short- and long-term notes payable to suppliers for those materials or goods. The term _goods_ includes certain loans and other debt and equity instruments of other entities that are acquired specifically for resale, as discussed in paragraph [230-10-45-21](https://asc.understandingaccounting.org/asc/230/10/#230-10-45-21). 2. b Cash payments to other suppliers and employees for other goods or services. 3. c Cash payments to governments for taxes, duties, fines, and other fees or penalties. 4. d Cash payments to lenders and other creditors for interest, including the portion of the payments made to settle zero-coupon debt instruments that is attributable to accreted interest related to the debt discount or the portion of the payments made to settle other debt instruments with coupon interest rates that are insignificant in relation to the [effective interest rate](https://asc.understandingaccounting.org/glossary/e/#effective-interest-rate "The rate of return implicit in the financial asset, that is, the contractual interest rate adjusted for any net deferred fees or costs, premium, or discount existing at the origination or acquisition of the financial asset. For purchased financial assets with credit deterioration, however, to decouple interest income from credit loss recognition, the premium or discount at acquisition excludes the discount embedded in the purchase price that is attributable to the acquirer's assessment of credit losses at the date of acquisition.") of the borrowing that is attributable to accreted interest related to the debt discount. For all other debt instruments, an issuer shall not bifurcate cash payments to lenders and other creditors at settlement for amounts attributable to accreted interest related to the debt discount, nor classify such amounts as cash outflows for operating activities. 5. e Cash payment made to settle an asset retirement obligation. 6. ee Cash payments, or the portion of the payments, not made soon after the acquisition date of a business combination by an acquirer to settle a contingent consideration liability that exceed the amount of the contingent consideration liability recognized at the acquisition date, including measurement-period adjustments, less any amounts paid soon after the acquisition date to settle the contingent consideration liability. See also paragraph [230-10-45-15(f)](https://asc.understandingaccounting.org/asc/230/10/#230-10-45-15). 7. f All other cash payments that do not stem from transactions defined as investing or financing activities, such as payments to settle lawsuits, cash [contributions](https://asc.understandingaccounting.org/glossary/c/#contribution "An unconditional transfer of cash or other assets, as well as unconditional promises to give, to an entity or a reduction, settlement, or cancellation of its liabilities in a voluntary nonreciprocal transfer by another entity acting other than as an owner. Those characteristics distinguish contributions from:Exchange transactions, which are reciprocal transfers in which each party receives and sacrifices approximately commensurate valueInvestments by owners and distributions to owners, which are nonreciprocal transfers between an entity and its ownersOther nonreciprocal transfers, such as impositions of taxes or legal judgments, fines, and thefts, which are not voluntary transfers. In a contribution transaction, the resource provider often receives value indirectly by providing a societal benefit although that benefit is not considered to be of commensurate value. In an exchange transaction, the potential public benefits are secondary to the potential direct benefits to the resource provider. The term contribution revenue is used to apply to transactions that are part of the entity's ongoing major or central activities (revenues), or are peripheral or incidental to the entity (gains). See also Inherent Contribution and Conditional Contribution.") to charities, and cash refunds to customers. ##### [230-10-45-18](https://asc.understandingaccounting.org/asc/230/10/#230-10-45-18) Pending content: no Source downloaded (UTC): 2026-09-09T23:11:33.323Z to 2026-09-09T23:11:33.323Z Record version: sha256:5db8ed559f0ef06ccf3a9026c4644e97c3ad9d66381eab8d3c9f4a6ffb7fc663 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Banks, brokers and dealers in securities, and other entities may carry securities and other assets in a trading account. Characteristics of trading account activities are described in Topics 255 and 940. ##### [230-10-45-19](https://asc.understandingaccounting.org/asc/230/10/#230-10-45-19) Pending content: no Source downloaded (UTC): 2026-09-09T23:11:33.323Z to 2026-09-09T23:11:33.323Z Record version: sha256:8e75801d866b56a76ee55fffb1a710e47cd9f18fedbe45a61a9d52ae434ec5ce Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Cash receipts and cash payments resulting from purchases and sales of securities classified as trading debt securities accounted for in accordance with Topic 320and equity securities accounted for in accordance with Topic 321shall be classified pursuant to this Topic based on the nature and purpose for which the securities were acquired. ##### [230-10-45-20](https://asc.understandingaccounting.org/asc/230/10/#230-10-45-20) Pending content: no Source downloaded (UTC): 2026-09-09T23:11:33.323Z to 2026-09-09T23:11:33.323Z Record version: sha256:bc8720f94766a826c4c30df9baa360f13ece3a605c2a5d94a7e9df6e47489458 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Cash receipts and cash payments resulting from purchases and sales of other securities and other assets shall be classified as operating cash flows if those assets are acquired specifically for resale and are carried at [fair value](https://asc.understandingaccounting.org/glossary/f/#fair-value "The price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.") in a trading account. ##### [230-10-45-21](https://asc.understandingaccounting.org/asc/230/10/#230-10-45-21) Pending content: no Source downloaded (UTC): 2026-09-09T23:11:33.323Z to 2026-09-09T23:11:33.323Z Record version: sha256:55b181aa779eec9a88ec4d3e362b6750d06aa78c50ec8edcefc16e1ac1d8e12b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Some loans are similar to debt securities in a trading account in that they are originated or purchased specifically for resale and are held for short periods of time. Cash receipts and cash payments resulting from acquisitions and sales of loans also shall be classified as operating cash flows if those loans are acquired specifically for resale and are carried at fair value or at the lower of amortized cost basis or fair value. For example, mortgage loans held for sale are required to be reported at the lower of amortized cost basis or fair value in accordance with Topic 948. ##### [230-10-45-21A](https://asc.understandingaccounting.org/asc/230/10/#230-10-45-21A) Pending content: no Source downloaded (UTC): 2026-09-09T23:11:33.323Z to 2026-09-09T23:11:33.323Z Record version: sha256:9e4a84a491bf3b8554485257dd5d2ca9c8c6f0e308054d7dc64b3953ea715a88 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Cash receipts resulting from the sale of donated [financial assets](https://asc.understandingaccounting.org/glossary/f/#financial-asset "Cash, evidence of an ownership interest in an entity, or a contract that conveys to one entity a right to do either of the following: Receive cash or another financial instrument from a second entity Exchange other financial instruments on potentially favorable terms with the second entity.") (for example, donated debt or equity instruments) or crypto assets accounted for in accordance with Subtopic 350-60by NFPs that upon receipt were directed without any NFP-imposed limitations for sale and were converted nearly immediately into cash shall be classified as operating cash flows. If, however, the donor restricted the use of the contributed resource to a long-term purpose of the nature of those described in paragraph [230-10-45-14(c)](https://asc.understandingaccounting.org/asc/230/10/#230-10-45-14), then those cash receipts meeting all the conditions in this paragraph shall be classified as a financing activity. ##### [230-10-45-21B](https://asc.understandingaccounting.org/asc/230/10/#230-10-45-21B) Pending content: no Source downloaded (UTC): 2026-09-09T23:11:33.323Z to 2026-09-09T23:11:33.323Z Record version: sha256:f3ff069fac9c78f944e0cd96b0e12d3deda66b4c02ac97d146990ca0ead2e9a6 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Cash receipts resulting from the settlement of insurance claims, excluding proceeds received from corporate-owned life insurance policies and bank-owned life insurance policies, shall be classified on the basis of the related insurance coverage (that is, the nature of the loss). For insurance proceeds that are received in a lump-sum settlement, an entity shall determine the classification on the basis of the nature of each loss included in the settlement. ##### [230-10-45-21C](https://asc.understandingaccounting.org/asc/230/10/#230-10-45-21C) Pending content: no Source downloaded (UTC): 2026-09-09T23:11:33.323Z to 2026-09-09T23:11:33.323Z Record version: sha256:deea448a8b067220d61177881c9e5d5f8546dbf4356419e45e081b2a2be61f24 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Cash receipts resulting from the settlement of corporate-owned life insurance policies, including bank-owned life insurance policies, shall be classified as cash inflows from investing activities. Cash payments for premiums on corporate-owned life insurance policies, including bank-owned life insurance policies, may be classified as cash outflows for investing activities, operating activities, or a combination of cash outflows for investing and operating activities. ##### [230-10-45-21D](https://asc.understandingaccounting.org/asc/230/10/#230-10-45-21D) Pending content: no Source downloaded (UTC): 2026-09-09T23:11:33.323Z to 2026-09-09T23:11:33.323Z Record version: sha256:4cd6f2f130e50e29510caf9efebca3fbf73b055fed19bacb7102a812d0e45254 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. When a reporting entity applies the equity method, it shall make an accounting policy election to classify distributions received from equity method investees using either of the following approaches: 1. a Cumulative earnings approach: Distributions received are considered returns on investment and shall be classified as cash inflows from operating activities unless the investor's cumulative distributions received less distributions received in prior periods that were determined to be returns of investment exceed cumulative equity in earnings recognized by the investor (as adjusted for amortization of basis differences). When such an excess occurs, the current-period distribution up to this excess is considered a return of investment and shall be classified as cash inflows from investing activities. 2. b Nature of the distribution approach: Distributions received shall be classified on the basis of the nature of the activity or activities of the investee that generated the distribution as either a return on investment (classified as a cash inflow from operating activities) or a return of investment (classified as a cash inflow from investing activities) when such information is available. If an entity elects to apply the nature of the distribution approach and the information to apply that approach to distributions received from an individual equity method investee is not available to the investor, the entity shall report a change in accounting principle on a retrospective basis by applying the cumulative earnings approach described in (a) above for that investee. In such situations, an entity shall disclose that a change in accounting principle has occurred with respect to the affected investee(s) due to the lack of available information and shall provide the disclosures required in paragraphs [250-10-50-1(b)](https://asc.understandingaccounting.org/asc/250/10/#250-10-50-1) and [250-10-50-2](https://asc.understandingaccounting.org/asc/250/10/#250-10-50-2), as applicable. With either approach described in (a) or (b) above, an entity also shall comply with the applicable accounting policy disclosure requirements in paragraphs [235-10-50-1 through 50-6](https://asc.understandingaccounting.org/asc/235/10/#235-10-50-1) . ##### [230-10-45-22](https://asc.understandingaccounting.org/asc/230/10/#230-10-45-22) Pending content: no Source downloaded (UTC): 2026-09-09T23:11:33.323Z to 2026-09-09T23:11:33.323Z Record version: sha256:e61eb5bf68327fc779b670cdc5b98316057032b9bcfcb2c7409b12c14dc05825 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Certain cash receipts and payments may have aspects of more than one class of cash flows. The classification of those cash receipts and payments shall be determined first by applying specific guidance in this Topic and other applicable Topics. In the absence of specific guidance, a reporting entity shall determine each separately identifiable source or each separately identifiable use within the cash receipts and cash payments on the basis of the nature of the underlying cash flows, including when judgment is necessary to estimate the amount of each separately identifiable source or use. A reporting entity shall then classify each separately identifiable source or use within the cash receipts and payments on the basis of their nature in financing, investing, or operating activities. ##### [230-10-45-22A](https://asc.understandingaccounting.org/asc/230/10/#230-10-45-22A) Pending content: no Source downloaded (UTC): 2026-09-09T23:11:33.323Z to 2026-09-09T23:11:33.323Z Record version: sha256:c6b34eb7ef6f06a60ef802117c428f6aed1cdd9ebf58fc661feaa14002f84dab Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. In situations in which cash receipts and payments have aspects of more than one class of cash flows and cannot be separated by source or use (for example, when a piece of equipment is acquired or produced by an entity to be rented to others for a period of time and then sold), the appropriate classification shall depend on the activity that is likely to be the predominant source or use of cash flows for the item. ##### [230-10-45-23](https://asc.understandingaccounting.org/asc/230/10/#230-10-45-23) Pending content: no Source downloaded (UTC): 2026-09-09T23:11:33.323Z to 2026-09-09T23:11:33.323Z Record version: sha256:69e1488d370381a9f8cc1c5ff7ac5913d421dc64c358bcebd844a962309dbb24 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Another example where cash receipts and payments include more than one class of cash flows involves a derivative instrument that includes a financing element at inception, other than a financing element inherently included in an at-the-market derivative instrument with no prepayments, because the borrower's cash flows are associated with both the financing element and the derivative instrument. For that derivative instrument, all cash inflows and outflows shall be considered cash flows from financing activities by the borrower. ##### [230-10-45-24](https://asc.understandingaccounting.org/asc/230/10/#230-10-45-24) Pending content: no Source downloaded (UTC): 2026-09-09T23:11:33.323Z to 2026-09-09T23:11:33.323Z Record version: sha256:5536e15a38a9aba97d7a5fc5f0e84c2048a71c5fae934646dbb9d43ebac81de2 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. A statement of cash flows for a period shall report net cash provided or used by operating, investing, and financing activities and the net effect of those flows on the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents during the period. The statement of cash flows shall report that information in a manner that reconciles beginning and ending totals of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. ##### [230-10-45-24A](https://asc.understandingaccounting.org/asc/230/10/#230-10-45-24A) Pending content: no Source downloaded (UTC): 2026-09-09T23:11:33.323Z to 2026-09-09T23:11:33.323Z Record version: sha256:2557f4cc4706efdbbbce0bf0eb2214e561afe05057a3e3d07817d32285df22cc Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. For cash flow disclosures related to a discontinued operation, see paragraph [205-20-50-5B(c)](https://asc.understandingaccounting.org/asc/205/20/#205-20-50-5B). ##### [230-10-45-25](https://asc.understandingaccounting.org/asc/230/10/#230-10-45-25) Pending content: no Source downloaded (UTC): 2026-09-09T23:11:33.323Z to 2026-09-09T23:11:33.323Z Record version: sha256:ad69f73118bf6bd59dcdee016868780afdb44e90dc0ab0b56679796acdd37234 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. In reporting cash flows from operating activities, entities are encouraged to report major classes of gross cash receipts and gross cash payments and their arithmetic sum—the net cash flow from operating activities (the direct method). (Paragraphs [230-10-55-1 through 55-4](https://asc.understandingaccounting.org/asc/230/10/#230-10-55-1) and paragraph [230-10-55-21](https://asc.understandingaccounting.org/asc/230/10/#230-10-55-21), respectively, discuss and illustrate a method by which those major classes of gross operating cash receipts and payments generally may be determined indirectly.) Entities that do so shall, at a minimum, separately report the following classes of operating cash receipts and payments: 1. a Cash collected from customers, including lessees, licensees, and the like 2. b Interest and dividends received. Interest and dividends that are donor restricted for long-term purposes as included in the list of [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.") and paragraph [230-10-45-14(c)](https://asc.understandingaccounting.org/asc/230/10/#230-10-45-14) are not part of operating cash receipts. 3. c Other operating cash receipts, if any 4. d Cash paid to employees and other suppliers of goods or services, including suppliers of insurance, advertising, and the like 5. e Interest paid, including the portion of the payments made to settle zero-coupon debt instruments that is attributable to accreted interest related to the debt discount or the portion of the payments made to settle other debt instruments with coupon interest rates that are insignificant in relation to the [effective interest rate](https://asc.understandingaccounting.org/glossary/e/#effective-interest-rate "The rate of return implicit in the financial asset, that is, the contractual interest rate adjusted for any net deferred fees or costs, premium, or discount existing at the origination or acquisition of the financial asset. For purchased financial assets with credit deterioration, however, to decouple interest income from credit loss recognition, the premium or discount at acquisition excludes the discount embedded in the purchase price that is attributable to the acquirer's assessment of credit losses at the date of acquisition.") of the borrowing that is attributable to accreted interest related to the debt discount 6. f Income taxes paid 7. g Other operating cash payments, if any. Entities are encouraged to provide further breakdowns of operating cash receipts and payments that they consider meaningful and feasible. For example, a retailer or manufacturer might decide to further divide cash paid to employees and suppliers (category (d) in the preceding paragraph) into payments for costs of inventory and payments for selling, general, and administrative expenses. ##### [230-10-45-26](https://asc.understandingaccounting.org/asc/230/10/#230-10-45-26) Pending content: no Source downloaded (UTC): 2026-09-09T23:11:33.323Z to 2026-09-09T23:11:33.323Z Record version: sha256:20993df9557577951f2ae6bf2af2569792a4a305372a3e26b803c59dec1a05b0 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Except for items described in paragraphs [230-10-45-8 through 45-9](https://asc.understandingaccounting.org/asc/230/10/#230-10-45-8) , both investing cash inflows and outflows and financing cash inflows and outflows shall be reported separately in a statement of cash flows—for example, outlays for acquisitions of property, plant, and equipment shall be reported separately from proceeds from sales of property, plant, and equipment; proceeds of borrowings shall be reported separately from repayments of debt; and proceeds from issuing stock shall be reported separately from outlays to reacquire the entity's stock. ##### [230-10-45-27](https://asc.understandingaccounting.org/asc/230/10/#230-10-45-27) Pending content: no Source downloaded (UTC): 2026-09-09T23:11:33.323Z to 2026-09-09T23:11:33.323Z Record version: sha256:3d740b9441e72c27e709027711abd2a8eca11f9bb5c68c2c7c692538d0fdfd5c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Generally, each cash receipt or payment is to be classified according to its nature without regard to whether it stems from an item intended as a hedge of another item. For example, the proceeds of a borrowing are a financing cash inflow even though the debt is intended as a hedge of an investment, and the purchase or sale of a futures contract is an investing activity even though the contract is intended as a hedge of a firm commitment to purchase inventory. However, cash flows from a derivative instrument that is accounted for as a fair value hedge or cash flow hedge may be classified in the same category as the cash flows from the items being hedged provided that the derivative instrument does not include an other-than-insignificant financing element at inception, other than a financing element inherently included in an at-the-market derivative instrument with no prepayments (that is, the forward points in an at-the-money forward contract) and that the accounting policy is disclosed. If the derivative instrument includes an other-than-insignificant financing element at inception, all cash inflows and outflows of the derivative instrument shall be considered cash flows from financing activities by the borrower. If for any reason hedge accounting for an instrument that hedges an identifiable transaction or event is discontinued, then any cash flows after the date of discontinuance shall be classified consistent with the nature of the instrument. ##### [230-10-45-27A](https://asc.understandingaccounting.org/asc/230/10/#230-10-45-27A) Pending content: no Source downloaded (UTC): 2026-09-09T23:11:33.323Z to 2026-09-09T23:11:33.323Z Record version: sha256:5a8c643a3fe25b8df538a1cdbef447a96c396bf36d0f642dfa3c956d47e02a69 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If crypto assets accounted for in accordance with Subtopic 350-60 are received as noncash consideration in the ordinary course of business (for example, in exchange for goods and services transferred to a customer) and converted nearly immediately into cash, the cash received shall be classified as operating activities. In this context, the term _nearly immediately_ refers to a short period of time that is expected to be within hours or a few days, rather than weeks. #### Reconciliation of Net Income and Net Cash Flow from Operating Activities ##### [230-10-45-28](https://asc.understandingaccounting.org/asc/230/10/#230-10-45-28) Pending content: no Source downloaded (UTC): 2026-09-09T23:11:33.323Z to 2026-09-09T23:11:33.323Z Record version: sha256:0ba7717e07dab5cbab8dfe523b20e4e44d8fcf07a925486a2ae6268eb5fc35b1 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Entities that choose not to provide information about major classes of operating cash receipts and payments by the direct method as encouraged in paragraph [230-10-45-25](https://asc.understandingaccounting.org/asc/230/10/#230-10-45-25) shall determine and report the same amount for net cash flow from operating activities indirectly by adjusting net income of a business entity or change in net assets of a not-for-profit entity (NFP) to reconcile it to net cash flow from operating activities (the indirect or reconciliation method). That requires adjusting net income of a business entity or change in net assets of an NFP to remove both of the following: 1. a The effects of all deferrals of past operating cash receipts and payments, such as changes during the period in inventory, deferred income, and the like, and all accruals of expected future operating cash receipts and payments, such as changes during the period in receivables and payables. Adjustments to net income of a business entity or change in net assets of an NFP to determine net cash flow from operating activities shall reflect accruals for interest earned but not received and interest incurred but not paid. Those accruals may be reflected in the statement of financial position in changes in assets and liabilities that relate to investing or financing activities, such as loans or deposits. However, interest credited directly to a deposit account that has the general characteristics 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.") is a cash outflow of the payor and a cash inflow of the payee when the entry is made. 2. b All items that are included in net income of a business entity or change in net assets of an NFP that do not affect net cash provided from, or used for, operating activities such as depreciation of property, plant, and equipment and amortization of finite-life intangible assets. This includes all items whose cash effects are related to investing or financing cash flows, such as gains or losses on sales of property, plant, and equipment and discontinued operations (which relate to investing activities), and gains or losses on extinguishment of debt (which relate to financing activities). ##### [230-10-45-29](https://asc.understandingaccounting.org/asc/230/10/#230-10-45-29) Pending content: no Source downloaded (UTC): 2026-09-09T23:11:33.323Z to 2026-09-09T23:11:33.323Z Record version: sha256:c086dff6b1a7cf0d410e651432569c6c2fccedc396624d0644637785fd62c342 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The reconciliation of net income of a business entity to net cash flow from operating activities described in paragraph [230-10-45-28](https://asc.understandingaccounting.org/asc/230/10/#230-10-45-28) shall be provided regardless of whether the direct or indirect method of reporting net cash flow from operating activities is used. However, NFPs that use the direct method of reporting net cash flows from operations are not required to provide a reconciliation of change in net assets to net cash flow from operating activities. Additional guidance for NFPs is found in Subtopic 958-230. The reconciliation shall separately report all major classes of reconciling items. For example, major classes of deferrals of past operating cash receipts and payments and accruals of expected future operating cash receipts and payments, including, at a minimum, changes during the period in receivables pertaining to operating activities, in inventory, and in payables pertaining to operating activities, shall be separately reported. Entities are encouraged to provide further breakdowns of those categories that they consider meaningful. For example, changes in receivables from customers for an entity's sale of goods or services might be reported separately from changes in other operating receivables. ##### [230-10-45-30](https://asc.understandingaccounting.org/asc/230/10/#230-10-45-30) Pending content: no Source downloaded (UTC): 2026-09-09T23:11:33.323Z to 2026-09-09T23:11:33.323Z Record version: sha256:84bc306d98c94c28fca522d3c7536e8ab5d7452f3184b2692faefd85dadc1282 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If an entity other than an NFP uses the direct method of reporting net cash flow from operating activities, the reconciliation of net income to net cash flow from operating activities shall be provided in a separate schedule. ##### [230-10-45-31](https://asc.understandingaccounting.org/asc/230/10/#230-10-45-31) Pending content: no Source downloaded (UTC): 2026-09-09T23:11:33.323Z to 2026-09-09T23:11:33.323Z Record version: sha256:6f6479af82f1316df8e187acecb973ba38c5f228b1ed3630cb6444961e170f26 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If the indirect method is used, the reconciliation may be either reported within the statement of cash flows or provided in a separate schedule, with the statement of cash flows reporting only the net cash flow from operating activities. ##### [230-10-45-32](https://asc.understandingaccounting.org/asc/230/10/#230-10-45-32) Pending content: no Source downloaded (UTC): 2026-09-09T23:11:33.323Z to 2026-09-09T23:11:33.323Z Record version: sha256:6bebdb233ad669055ded501eb4f089c9baee2ab4f760f3824932b2893a76b306 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If the reconciliation is presented in the statement of cash flows, all adjustments to net income of a business entity or change in net assets of an NFP to determine net cash flow from operating activities shall be clearly identified as reconciling items.