noncash investing and financing activities

Presentation3

1. 230-10Overall230 Statement of Cash Flows

   ASC 230-10 governs the statement of cash flows, which every entity presenting both financial position and results of operations must provide for each period results of operations are presented (230-10-15-3). It requires cash receipts and payments to be classified as operating, investing, or financing activities and requires the statement to explain the change in the total of cash, cash equivalents, restricted cash, and restricted cash equivalents (230-10-45-4, 45-10, 45-24). Operating cash flows may be presented by the direct method (encouraged) or the indirect method, but a business entity must reconcile net income to net cash flow from operating activities either way (230-10-45-25, 45-28, 45-29).

2. 230-946Financial Services—Investment Companies230 Statement of Cash Flows

   This subtopic applies the statement of cash flows requirements to investment companies and points to the narrow exemption that lets certain investment companies omit the statement entirely. It also identifies noncash investing and financing activities peculiar to investment companies — notably reinvested dividends and distributions — that must be disclosed.

3. 230-958Not-for-Profit Entities230 Statement of Cash Flows

   This subtopic provides implementation guidance for how not-for-profit entities (NFPs) prepare a statement of cash flows under Topic 230. It addresses when otherwise-qualifying short-term investments cannot be treated as cash equivalents because of donor restrictions, how donor-restricted contributions for long-term purposes must be reclassified as financing inflows, and how agency transactions, noncash contributions, and collection items are reported.