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A Roadmap to the Preparation of the Statement of Cash Flows (2017)

A Roadmap to the Preparation of the Statement of Cash Flows (2017)

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This Roadmap provides Deloitte’s insights into and interpretations of the accounting guidance on the statement of cash flows, primarily that in ASC 230. Changes to the 2017 edition of this Roadmap include updates related to the amendments in FASB Accounting Standards Update (ASU) Nos. 2016-15, Classification of Certain Cash Receipts and Cash Payments, and 2016-18, Restricted Cash. Specifically, this year’s edition highlights guidance (including pending guidance) and interpretations that entities apply both before and after adopting these two ASUs.

Summary of Changes Since Issuance (Links Are Available to Subscribers Only)

The following changes were made to this Roadmap since its issuance in March 2016:
Date of Change
Location of Change
Type of Change
Reason for Change
May 11, 2017
Added
Addresses the presentation alternatives a reporting entity can apply, before and after adopting ASU 2016-18, to reflect the cash and cash equivalents held by the legal entity that is consolidated (or deconsolidated) as a result of the initial adoption of ASU 2015-02.
May 11, 2017
Added
Discusses accounting related to situations in which an entity elects to change its historical classification of certain items in the statement of cash flows.
May 11, 2017
Added
Addresses a lessee’s presentation of consideration received from a lessor to exit an operating lease before the end of the lease term.
May 11, 2017
Added
Covers the presentation of up-front payments made in exchange for land-use rights with a specified term.
May 11, 2017
Added
Discusses the presentation of cash and cash equivalents that are included in a disposal group or component classified as held for sale.
May 11, 2017
Added
Provides guidance on preparing a statement of cash flows under IFRSs.
May 11, 2017
Amended
Notes (1) the ratification of EITF Issues 15-F and 16-A and (2) the issuance of ASUs 2016-15 and 2015-18 (including effective dates and transition).
May 11, 2017
Amended
Addresses amendments resulting from ASU 2016-14, which affect NFPs that choose to use the direct method to present a statement of cash flows.
May 11, 2017
Amended
Updated (and moved from Section 6.1.1) to reflect how ASU 2016-18 will affect the presentation of restricted cash in the statement of cash flows.
May 11, 2017
Amended
Updated (and moved from Section 6.1.2) for the issuance of ASU 2016-18, which will change how interest on restricted cash is classified in the statement of cash flows.
May 11, 2017
Amended
Incorporates considerations related to the netting of bank accounts in a subsidiary’s stand-alone financial statements.
May 11, 2017
Amended
Example 5-3 has been added to illustrate a business combination involving the reacquisition of treasury stock and a cash infusion into the acquired entity for the difference between the acquired entity’s fair value and the fair value of the reacquired treasury stock.
May 11, 2017
Amended
Discusses an entity’s presentation in the statement of cash flows before and after the entity adopts ASU 2016-15.
May 11, 2017
Amended
Example 6-5A has been added to illustrate industry practices related to the presentation of payments on account whose payment terms extend beyond three months
May 11, 2017
Amended
Discusses an entity’s presentation in the statement of cash flows before and after the entity adopts ASU 2016-15.
May 11, 2017
Amended
Discusses an entity’s presentation in the statement of cash flows before and after the entity adopts ASU 2016-15.
May 11, 2017
Amended
Addresses the classification of a transferor’s initial receipt of the beneficial interest in a securitization of trade receivables in accordance with ASU 2016-15.
May 11, 2017
Amended
Updated for the issuance of ASU 2016-15.
May 11, 2017
Amended
Discusses an entity’s presentation in the statement of cash flows before and after the entity adopts ASU 2016-15 (changes include minor amendments to Example 6-7 and the addition of Examples 6-7A and 6-7B).
May 11, 2017
Amended
Discusses an entity’s presentation in the statement of cash flows before and after the entity adopts ASU 2016-15.
May 11, 2017
Amended
Discusses an entity’s presentation in the statement of cash flows before and after the entity adopts ASU 2016-09 (changes include the addition of Example 7-1A).
May 11, 2017
Amended
Example 7-2A has been added to illustrate the classification of the repurchase of shares from employees when the purchase price exceeds the fair value of the shares.
May 11, 2017
Amended
Addresses the presentation of cash payments to tax authorities in connection with shares withheld to meet statutory tax withholding requirements in accordance with ASU 2016-09.
May 11, 2017
Amended
Clarifies factors an entity would consider when presenting debt in a business combination (including updates to Example 7-6 and the deletion of Example 7-7).
May 11, 2017
Amended
Discusses an entity’s presentation in the statement of cash flows before and after the entity adopts ASU 2016-15.
May 11, 2017
Amended
Discusses an entity’s presentation in the statement of cash flows before and after the entity adopts ASU 2016-15.