{"schema_version":2,"canonical_url":"https://asc.understandingaccounting.org/asc/230/10/#55-implementation-guidance-and-illustrations","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":"55","label":"55 Implementation Guidance and Illustrations","anchor":"55-implementation-guidance-and-illustrations","is_sec":false,"groups":[{"block":null,"heading":"Implementation Guidance","paragraphs":[{"citation":"230-10-55-1","para":"55-1","html":"
Given sufficiently detailed information, major classes of operating cash receipts and payments may be determined indirectly by adjusting revenue and expense amounts for the change during the period in related asset and liability accounts. For example, cash collected from customers may be determined indirectly by adjusting sales for the change during the period in receivables from customers for the entity's delivery of goods or services. Likewise, cash paid to suppliers and employees may be determined indirectly by adjusting cost of sales and expenses (exclusive of depreciation, interest, and income taxes) for the change during the period in inventories and payables for operating items. That procedure, of course, requires the availability of information concerning the change during the period in the appropriate classes of receivables and payables. The more detailed the categories of operating cash receipts and payments to be reported, the more complex the procedure for determining them. For the resulting operating cash receipts and payments to be accurate, the effects of all noncash entries to accounts receivable and payable, inventory, and other balance sheets accounts used in the calculation shall be eliminated. For example, the change in accounts receivable would have to be determined exclusive of any bad debt write-offs and other noncash charges and credits to customer accounts during the period.
","snippet":"Given sufficiently detailed information, major classes of operating cash receipts and payments may be determined indirectly by adjusting revenue and expense amounts for the change during the period in related asset and l…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:6a551b38f3b85dd63a755df9720466d90b48044ed5b9254df339d24c74e3915c","downloaded_from":"2026-09-09T23:11:40.068Z","last_downloaded_at":"2026-09-09T23:11:40.068Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482888","source_sha256":"78f712114cfb312a7edb0b5b816c0eb200e2d4a73bceb4bff9b3f862917997a0"}},{"citation":"230-10-55-2","para":"55-2","html":"
Amounts of operating cash receipts and payments at the minimum level of detail specified in paragraph 230-10-45-25 often may be determined indirectly without incurring unduly burdensome costs over those involved in appropriately applying the indirect method. For example, determining net cash flow from operating activities by the indirect method requires the availability of the total amount of operating receivables. That is, any receivables for investing or financing items shall be segregated. Within the total amount of operating receivables, information on receivables from customers for an entity's delivery of goods or services may well be available separately from those for interest and dividends. Thus, it may be possible to determine indirectly cash collected from customers and interest and dividends received using much the same information needed to determine net cash flow from operating activities using the indirect method.
","snippet":"Amounts of operating cash receipts and payments at the minimum level of detail specified in paragraph 230-10-45-25 often may be determined indirectly without incurring unduly burdensome costs over those involved in appro…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:37dc7fbe9e81399241ac9fe7b525fc4e12fe6eac9baba7181482d95bfc0fd149","downloaded_from":"2026-09-09T23:11:40.068Z","last_downloaded_at":"2026-09-09T23:11:40.068Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482888","source_sha256":"78f712114cfb312a7edb0b5b816c0eb200e2d4a73bceb4bff9b3f862917997a0"}},{"citation":"230-10-55-3","para":"55-3","html":"
The same procedure may be used to determine cash paid to suppliers and employees. Determining net cash flow from operating activities by the direct method requires the availability of the total amount of payables pertaining to operating activities. Within that amount, payables to suppliers and employees may well be available separately from those for interest and taxes. However, determining operating cash payments in more detail than the minimum specified in paragraph 230-10-45-25 might involve significant incremental costs over those already required to apply the indirect method because information on subcategories of payables to suppliers and employees may not be available.
","snippet":"The same procedure may be used to determine cash paid to suppliers and employees. Determining net cash flow from operating activities by the direct method requires the availability of the total amount of payables pertain…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:92036935cee1788f4a6d151faea23bf6466243dcf9a3b24532c8023b333f747a","downloaded_from":"2026-09-09T23:11:40.068Z","last_downloaded_at":"2026-09-09T23:11:40.068Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482888","source_sha256":"78f712114cfb312a7edb0b5b816c0eb200e2d4a73bceb4bff9b3f862917997a0"}},{"citation":"230-10-55-4","para":"55-4","html":"
Many entities may well be able to determine amounts of operating cash receipts and payments at the minimum level of detail that this Subtopic encourages (see paragraph 230-10-45-25) indirectly at reasonable cost by the procedure discussed in paragraphs
230-10-55-1 through 55-3
. But few, if any, entities have experimented with the procedure, and the degree of difficulty encountered in applying it undoubtedly would vary depending on the nature of an entity's operations and the features of its current accounting system.
","snippet":"Many entities may well be able to determine amounts of operating cash receipts and payments at the minimum level of detail that this Subtopic encourages (see paragraph 230-10-45-25) indirectly at reasonable cost by the p…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:4890b634504f22e1d01f07c86a83867f4720336281c7d589ff07e4e96c0844cb","downloaded_from":"2026-09-09T23:11:40.068Z","last_downloaded_at":"2026-09-09T23:11:40.068Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482888","source_sha256":"78f712114cfb312a7edb0b5b816c0eb200e2d4a73bceb4bff9b3f862917997a0"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:932e06c88e803d901443b35fe9f1e414ba6762d5fbc7546ac33e7f619a7cfa5f","downloaded_from":"2026-09-09T23:11:40.068Z","last_downloaded_at":"2026-09-09T23:11:40.068Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482888","source_sha256":"78f712114cfb312a7edb0b5b816c0eb200e2d4a73bceb4bff9b3f862917997a0"}},{"block":null,"heading":"Illustrations","paragraphs":[{"citation":"230-10-55-5","para":"55-5","html":"
The Examples below provide illustrations for the preparation of statements of cash flows of business entities.
","snippet":"The Examples below provide illustrations for the preparation of statements of cash flows of business entities.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:67bb0ac12cd57ac9b55148c6174e66ccf9c59d52d1e4643f1b8fd769a11019e3","downloaded_from":"2026-09-09T23:11:40.068Z","last_downloaded_at":"2026-09-09T23:11:40.068Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482888","source_sha256":"78f712114cfb312a7edb0b5b816c0eb200e2d4a73bceb4bff9b3f862917997a0"}},{"citation":"230-10-55-6","para":"55-6","html":"
Section 958-205-55 provides illustrations for the preparation of statements of cash flows for a not-for-profit entity (NFP).
","snippet":"Section 958-205-55 provides illustrations for the preparation of statements of cash flows for a not-for-profit entity (NFP).","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:33f35c24aac92f49758b11306012939180d87e4d35b99da6edc21b904d120b0b","downloaded_from":"2026-09-09T23:11:40.068Z","last_downloaded_at":"2026-09-09T23:11:40.068Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482888","source_sha256":"78f712114cfb312a7edb0b5b816c0eb200e2d4a73bceb4bff9b3f862917997a0"}},{"citation":"230-10-55-7","para":"55-7","html":"
This Example illustrates a statement of cash flows under both the direct method and the indirect method for a domestic manufacturing entity.
","snippet":"This Example illustrates a statement of cash flows under both the direct method and the indirect method for a domestic manufacturing entity.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:44660e0b94c400595a2ce463b55836fa9fbbebe798b67085466ce76075a247cc","downloaded_from":"2026-09-09T23:11:40.068Z","last_downloaded_at":"2026-09-09T23:11:40.068Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482888","source_sha256":"78f712114cfb312a7edb0b5b816c0eb200e2d4a73bceb4bff9b3f862917997a0"}},{"citation":"230-10-55-8","para":"55-8","html":"
The illustrations of the reconciliation of net income to net cash provided by operating activities may provide detailed information in excess of that required for a meaningful presentation.
","snippet":"The illustrations of the reconciliation of net income to net cash provided by operating activities may provide detailed information in excess of that required for a meaningful presentation.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:473259483784be1a0d6f8a7a415eca398260b46b0993757701ffafd74563bc30","downloaded_from":"2026-09-09T23:11:40.068Z","last_downloaded_at":"2026-09-09T23:11:40.068Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482888","source_sha256":"78f712114cfb312a7edb0b5b816c0eb200e2d4a73bceb4bff9b3f862917997a0"}},{"citation":"230-10-55-9","para":"55-9","html":"
Other formats or levels of detail may be appropriate for particular circumstances.
","snippet":"Other formats or levels of detail may be appropriate for particular circumstances.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:1cb76059d2ba3def80cd829e0c272e34e8ffb0ea46fc91162e2c39e6ac3fb93f","downloaded_from":"2026-09-09T23:11:40.068Z","last_downloaded_at":"2026-09-09T23:11:40.068Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482888","source_sha256":"78f712114cfb312a7edb0b5b816c0eb200e2d4a73bceb4bff9b3f862917997a0"}},{"citation":"230-10-55-10","para":"55-10","html":"
The following is a statement of cash flows for the year ended December 31, 19X1, for Entity A, a U.S. corporation engaged principally in manufacturing activities. This statement of cash flows illustrates the direct method of presenting cash flows from operating activities, as encouraged in paragraph 230-10-45-25.
","snippet":"The following is a statement of cash flows for the year ended December 31, 19X1, for Entity A, a U.S. corporation engaged principally in manufacturing activities. This statement of cash flows illustrates the direct metho…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:d6e0da82ecd995f4715dd060ebdfdc00276ad0038b3e7e41c6c6cea6bcd69d07","downloaded_from":"2026-09-09T23:11:40.068Z","last_downloaded_at":"2026-09-09T23:11:40.068Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482888","source_sha256":"78f712114cfb312a7edb0b5b816c0eb200e2d4a73bceb4bff9b3f862917997a0"}},{"citation":"230-10-55-11","para":"55-11","html":"
The supplemental schedule of noncash investing and financing activities is as follows.
","snippet":"The supplemental schedule of noncash investing and financing activities is as follows.\nEntity A purchased all of the capital stock of Entity B for $950. In conjunction with the acquisition, liabilities were assumed as fo…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:d7bd8793f1aff6f6d5269a22317288cdf547e0a45d2b87fff11506fc080600db","downloaded_from":"2026-09-09T23:11:40.068Z","last_downloaded_at":"2026-09-09T23:11:40.068Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482888","source_sha256":"78f712114cfb312a7edb0b5b816c0eb200e2d4a73bceb4bff9b3f862917997a0"}},{"citation":"230-10-55-12","para":"55-12","html":"
The disclosure of accounting policy is as follows.
","snippet":"The disclosure of accounting policy is as follows.\nFor purposes of the statement of cash flows, the entity considers all highly liquid debt instruments purchased with a maturity of three months or less to be cash equival…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:3b68ff6b93bcfe740a52b1f485217c9823a9217334ed821fecb9440134d655c9","downloaded_from":"2026-09-09T23:11:40.068Z","last_downloaded_at":"2026-09-09T23:11:40.068Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482888","source_sha256":"78f712114cfb312a7edb0b5b816c0eb200e2d4a73bceb4bff9b3f862917997a0"}},{"citation":"230-10-55-12A","para":"55-12A","html":"
Shown below is an illustrative disclosure of the nature of restrictions on cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents required by paragraph 230-10-50-7, as well as an illustrative disclosure of the line items and amounts of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents reported within the statement of financial position that sum to the total of the same such amounts at the end of the period shown in the statement of cash flows as required by paragraph 230-10-50-8 (in this illustrative example, assume Entity A has no restricted cash equivalents). Comparative statements of financial position are provided in the illustrative example in paragraph 230-10-55-19 only to facilitate understanding of the statement of cash flows. For purposes of applying paragraphs
230-10-50-7 through 50-8
to this illustrative example, assume that the year ended December 31, 19X1, is the only period for which a statement of financial position is presented.
","snippet":"Shown below is an illustrative disclosure of the nature of restrictions on cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents required by paragraph 230-10-50-7, as w…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:36a825d38fcd2e51a96ce7ce8cb8398ec12f7d3e1cfeac581cf7280741dc4a74","downloaded_from":"2026-09-09T23:11:40.068Z","last_downloaded_at":"2026-09-09T23:11:40.068Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482888","source_sha256":"78f712114cfb312a7edb0b5b816c0eb200e2d4a73bceb4bff9b3f862917997a0"}},{"citation":"230-10-55-13","para":"55-13","html":"
The following is Entity A's statement of cash flows for the year ended December 31, 19X1, prepared using the indirect method, as described in paragraph 230-10-45-28.
","snippet":"The following is Entity A's statement of cash flows for the year ended December 31, 19X1, prepared using the indirect method, as described in paragraph 230-10-45-28.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:cce08420e00ddd13ef8465a9368c2f1f664374bfe2cf334e91417efb5e2ce897","downloaded_from":"2026-09-09T23:11:40.068Z","last_downloaded_at":"2026-09-09T23:11:40.068Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482888","source_sha256":"78f712114cfb312a7edb0b5b816c0eb200e2d4a73bceb4bff9b3f862917997a0"}},{"citation":"230-10-55-14","para":"55-14","html":"
The following table illustrates the supplemental disclosures of cash flow information.
Transition date:(P) December 16, 2024; (N) December 16, 2025Transition guidance:
740-10-65-9 The following table illustrates the supplemental disclosures of cash flow information.
Note: This Example does not illustrate the disclosures of income taxes paid required by paragraphs
740-10-50-22 through 50-23
, for the year ended December 31, 19X1.
","snippet":"The following table illustrates the supplemental disclosures of cash flow information.\nTransition date:(P) December 16, 2024; (N) December 16, 2025Transition guidance: 740-10-65-9 The following table illustrates the supp…","pending":true,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:db9af7f7527eb9b02742551ee7817df350bd00bc9b688c85baa7875212b1f322","downloaded_from":"2026-09-09T23:11:40.068Z","last_downloaded_at":"2026-09-09T23:11:40.068Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482888","source_sha256":"78f712114cfb312a7edb0b5b816c0eb200e2d4a73bceb4bff9b3f862917997a0"}},{"citation":"230-10-55-15","para":"55-15","html":"
The supplemental schedule of noncash investing and financing activities is as follows.
","snippet":"The supplemental schedule of noncash investing and financing activities is as follows.\nEntity A purchased all of the capital stock of Entity B for $950. In conjunction with the acquisition, liabilities were assumed as fo…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:04e73e014c27005b97a07089cf3194c4a2bfb083c54fd81462dfc9c0dfaf2d49","downloaded_from":"2026-09-09T23:11:40.068Z","last_downloaded_at":"2026-09-09T23:11:40.068Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482888","source_sha256":"78f712114cfb312a7edb0b5b816c0eb200e2d4a73bceb4bff9b3f862917997a0"}},{"citation":"230-10-55-16","para":"55-16","html":"
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The disclosure of accounting policy is as follows.
","snippet":"The disclosure of accounting policy is as follows.\nFor purposes of the statement of cash flows, the Entity considers all highly liquid debt instruments purchased with a maturity of three months or less to be cash equival…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:bcf2b81df32e0f810550746b83a544a9f3dfd5e352ce778442fb63b4a89be82f","downloaded_from":"2026-09-09T23:11:40.068Z","last_downloaded_at":"2026-09-09T23:11:40.068Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482888","source_sha256":"78f712114cfb312a7edb0b5b816c0eb200e2d4a73bceb4bff9b3f862917997a0"}},{"citation":"230-10-55-18A","para":"55-18A","html":"
Shown below is an illustrative disclosure of the nature of restrictions on cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents required by paragraph 230-10-50-7, as well as an illustrative disclosure of the line items and amounts of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents reported within the statement of financial position that sum to the total of the same such amounts at the end of the period shown in the statement of cash flows as required by paragraph 230-10-50-8 (in this illustrative example, assume Entity A has no restricted cash equivalents). Comparative statements of financial position are provided in the illustrative example in paragraph 230-10-55-19 only to facilitate understanding of the statement of cash flows. For purposes of applying paragraphs
230-10-50-7 through 50-8
to this illustrative example, assume that the year ended December 31, 19X1, is the only period for which a statement of financial position is presented.
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The following summarizes financial information for the current year for Entity A, which provides the basis for the statements of cash flows presented in paragraphs 230-10-55-10 through 55-18A.
","snippet":"The following summarizes financial information for the current year for Entity A, which provides the basis for the statements of cash flows presented in paragraphs 230-10-55-10 through 55-18A.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:514bb1f26e5395fc5fa3713fd09a15f13f38e02739a5fa387e4eb89367eb5373","downloaded_from":"2026-09-09T23:11:40.068Z","last_downloaded_at":"2026-09-09T23:11:40.068Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482888","source_sha256":"78f712114cfb312a7edb0b5b816c0eb200e2d4a73bceb4bff9b3f862917997a0"}},{"citation":"230-10-55-20","para":"55-20","html":"
The following transactions were entered into by Entity A during 19X1 and are reflected in the preceding financial statements:
  1. a
    Entity A wrote off $350 of accounts receivable when a customer filed for bankruptcy. A provision for losses on accounts receivable of $200 was included in Entity A's selling, general, and administrative expenses.
  2. b
    Entity A collected the third and final annual installment payment of $100 on a note receivable for the sale of inventory and collected the third of four annual installment payments of $150 each on a note receivable for the sale of a plant. Interest on these notes through December 31 totaling $55 was also collected.
  3. c
    Entity A received a distribution of $20 from an affiliate accounted for under the equity method of accounting. Entity A made an accounting policy election to apply the cumulative earnings approach described in paragraph 230-10-45-21D(a) and determined that the distribution was a return on investment.
  4. d
    Entity A sold a facility with a book value of $520 and an original cost of $750 for $600 cash.
  5. e
    Entity A constructed a new facility for its own use and placed it in service. Accumulated expenditures during the year of $1,000 included capitalized interest of $10.
  6. f
    Entity A entered into a capital lease for new equipment with a fair value of $850. The entity classified the lease as a finance lease. Principal payments under the lease obligation totaled $125.
  7. g
    Entity A purchased all of the capital stock of Entity B for $950 in a business combination. The fair values of Entity B's assets and liabilities at the date of acquisition are presented below.
    • \"
      Cash $25 Accounts receivable 155 Inventory 350 \"Property, plant, and equipment\" 900 Patents 80 Goodwill 70 Accounts payable and accrued expenses (255) Long-term note payable (375) Net assets acquired $950
  8. h
    Entity A borrowed and repaid various amounts under a line-of-credit agreement in which borrowings are payable 30 days after demand. The net increase during the year in the amount borrowed against the line-of-credit totaled $300.
  9. i
    Entity A issued $400 of long-term debt securities.
  10. j
    Entity A's provision for income taxes included a deferred provision of $150.
  11. k
    Entity A's depreciation of property, plant, and equipment and amortization of right-of-use assets arising from a finance lease totaled $430, and amortization of intangible assets totaled $15.
  12. l
    Entity A's selling, general, and administrative expenses included an accrual for incentive compensation of $50 that has been deferred by executives until their retirement. The related obligation was included in other liabilities.
  13. m
    Entity A collected insurance proceeds of $15 ($5 from a business interruption claim that resulted when a storm precluded shipment of inventory for one week and $10 from a property claim that resulted when fully depreciated manufacturing equipment was damaged by a fire).
  14. n
    Entity A paid $30 to settle a lawsuit for patent infringement.
  15. o
    Entity A issued $1,000 of additional common stock of which $500 was issued for cash and $500 was issued upon conversion of long-term debt.
  16. p
    Entity A paid dividends of $200.
  17. q
    Entity A paid $100 from its restricted cash for workers' compensation claims accrued before January 1, 19X1. Before January 1, 19X1, Entity A's insurer required $225 to be set aside by a contractual arrangement for the payment of specific workers' compensation claims.
","snippet":"The following transactions were entered into by Entity A during 19X1 and are reflected in the preceding financial statements:\n(a) Entity A wrote off $350 of accounts receivable when a customer filed for bankruptcy. A pro…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:07421f0f6014f3b02992cdc5984c96efcdb20a5235ab8f52262b69cafb192a78","downloaded_from":"2026-09-09T23:11:40.068Z","last_downloaded_at":"2026-09-09T23:11:40.068Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482888","source_sha256":"78f712114cfb312a7edb0b5b816c0eb200e2d4a73bceb4bff9b3f862917997a0"}},{"citation":"230-10-55-21","para":"55-21","html":"
Based on the financial data from the preceding paragraphs, which illustrated the statement of cash flows prepared using the direct method, the following computations illustrate a method of indirectly determining cash received from customers and cash paid to suppliers and employees for use in a statement of cash flows under the direct method.
","snippet":"Based on the financial data from the preceding paragraphs, which illustrated the statement of cash flows prepared using the direct method, the following computations illustrate a method of indirectly determining cash rec…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:8e0e91eeed65d87af22866d9765ceed07a8095670aa7a3155c71f3ba274d6b93","downloaded_from":"2026-09-09T23:11:40.068Z","last_downloaded_at":"2026-09-09T23:11:40.068Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482888","source_sha256":"78f712114cfb312a7edb0b5b816c0eb200e2d4a73bceb4bff9b3f862917997a0"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:80f3dd7af08bda63170a40e3d409701a0b95486fe34c35d1747f027e8769dfe6","downloaded_from":"2026-09-09T23:11:40.068Z","last_downloaded_at":"2026-09-09T23:11:40.068Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482888","source_sha256":"78f712114cfb312a7edb0b5b816c0eb200e2d4a73bceb4bff9b3f862917997a0"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:74ed1364e90babbc2cf0d9fac1a8d1dea54e49945e766f54945178e8e6ddbcd8","downloaded_from":"2026-09-09T23:11:40.068Z","last_downloaded_at":"2026-09-09T23:11:40.068Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482888","source_sha256":"78f712114cfb312a7edb0b5b816c0eb200e2d4a73bceb4bff9b3f862917997a0"}},"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:74ed1364e90babbc2cf0d9fac1a8d1dea54e49945e766f54945178e8e6ddbcd8","downloaded_from":"2026-09-09T23:11:40.068Z","last_downloaded_at":"2026-09-09T23:11:40.068Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482888","source_sha256":"78f712114cfb312a7edb0b5b816c0eb200e2d4a73bceb4bff9b3f862917997a0"}}