Preface

We are pleased to present the 2024 edition of Statement of Cash Flows. This Roadmap provides Deloitte’s insights into and interpretations of the accounting guidance on the statement of cash flows, primarily that in ASC 230.1

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. SEC Chief Accountant Paul Munter addressed this topic in a December 4, 2023, statement. Mr. Munter emphasized the importance of the statement of cash flows to providing investors with high-quality financial information and reminded preparers and auditors of their professional responsibilities in this respect. He further noted the SEC staff’s observation that “preparers and auditors may not always apply the same rigor and attention to the statement of cash flows as they do to other financial statements.”

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. This Roadmap includes some of Deloitte’s interpretive views on this topic.

The 2024 edition of this Roadmap includes several new discussions as well as clarifications of previously expressed views. Appendix H highlights all new content as well as any substantive revisions to previous content.

We hope that you find this publication a valuable resource when considering the accounting guidance on the statement of cash flows.2