Preface
We are pleased to present the 2023 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.
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 them.
The 2023 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.
Be sure to check out On the Radar (also available
as a stand-alone
publication), which briefly summarizes
emerging issues and trends related to the accounting and
financial reporting topics addressed in the Roadmap.
We hope that you find this publication a valuable resource when
considering the accounting guidance on the statement of cash flows.2
Footnotes
1
For the full titles of standards, topics, and regulations,
see Appendix F.
For the full forms of acronyms, see Appendix G.
2
Although this Roadmap is intended to be a helpful resource,
it is not a substitute for consulting with Deloitte professionals on complex
accounting questions and transactions.