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- US GAAP
This Roadmap provides Deloitte’s insights into and interpretations of the accounting
guidance on the statement of cash flows, primarily that in ASC 230.
The accounting principles related to the statement of cash flows
have been in place for many years; however, errors in the statement of cash flows
continue to be causes of restatements and registrants continue to receive comments
from the SEC staff on cash flow presentation matters.
While ASC 230 provides some guidance on cash payments and receipts
that are classified as either operating, investing, or financing activities, it does
not provide consistent principles for evaluating the classification of certain cash
payments and receipts in the statement of cash flows, which has led to diversity in
practice. In recent years, the FASB issued ASU 2016-15 and ASU 2016-18, which
clarified guidance in ASC 230 on the classification of certain cash flows and
removed some of the diversity in practice. This Roadmap reflects the amendments to
ASC 230 made by these ASUs and includes some of Deloitte’s interpretive views on
them.
The 2020 edition also incorporates interpretations and guidance
related to the new leasing standard, ASU 2016-02 (codified in ASC 842; see Section 7.6). ASU 2016-02 amended the leasing
guidance in U.S. GAAP — notably by requiring lessees to recognize liabilities for
lease payments and right-of-use assets — and became effective for calendar-year-end
public business entities on January 1, 2019. In addition, in response to the global
COVID-19 pandemic, the FASB issued a proposed
ASU on April 21, 2020, that would revise the effective dates of
both the revenue and leasing standards.
This Roadmap includes several new discussions as well as some
modifications to previously expressed views. Appendix
H highlights all new content as well as any substantive revisions to
previous content.