ASU 2012-05 — Statement of Cash Flows (Topic 230)

This Update addresses how cash receipts arising from the sale of certain donated financial assets, such as securities, should be classified in the statement of cash flows of not-for-profit entities (NFPs). Some NFPs classify those cash receipts as investing cash inflows, while other entities classify them as either operating cash inflows or financing cash inflows, consistent with their treatment of inflows arising from cash contributions. The objective of this Update is for an NFP to classify cash receipts from the sale of donated financial assets consistently with cash donations received in the statement of cash flows if those cash receipts were from the sale of donated financial assets that upon receipt were directed without the NFP imposing any limitations for sale and were converted nearly immediately into cash.

This Accounting Standards Update is the final version of Proposed Accounting Standards Update EITF-12A—Statement of Cash Flows (Topic 230) which has been deleted.

Issued: October 22, 2012