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Chapter 6 — Classification of Cash Flows

6.3 Operating Activities

6.3 Operating Activities

ASC 230-10-20 defines operating activities as follows:
Operating activities include all transactions and other events that are not defined as investing or financing activities (see paragraphs 230-10-45-12 through 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.

Footnotes

2
ASU 2016-09 removed from ASC 230-10-45-17(c) the notion that “the cash that would have been paid for income taxes if increases in the value of equity instruments issued under share-based payment arrangements that are not included in the cost of goods or services recognizable for financial reporting purposes also had not been deductible in determining taxable income. (This is the same amount reported as a financing cash inflow pursuant to paragraph 230-10-45-14(e).)”