Lessee’s amortization of right-of-use assets (see FSP 6.9.

Depreciation and amortization relating to fixed assets, definite-lived intangible assets, capital leases, premiums, or discounts on debt (including debt issuance costs).

Adjustments for noncash items in the reconciliation of net income to net cash flows from operating activities may include items such as:.In addition, as discussed in ASC 230-10-50-2, when the indirect method is used, amounts of interest paid (net of amounts capitalized) and income taxes paid during the period must be disclosed, either on the face of the statement of cash flow or in the footnotes. Instead, only the reconciliation of net income to net operating activities, as described above, is reported. As discussed in ASC 230-10-45-25 and ASC 230-10-45-28, when the indirect method is used, a reporting entity does not report the gross cash receipts and gross payments required by the direct method.All items included in net income that do not affect operating cash receipts and payments (for example, all items for which cash effects are related to investing or financing activities (e.g., depreciation, amortization, gains or losses on dispositions of long-lived assets, and foreign currency gains and losses from the retirement of foreign denominated debt)).All deferrals of past operating cash receipts and payments, and all accruals of expected future operating cash receipts and payments (for example, changes during the period in receivables and payables pertaining to operating activities).The reconciliation removes the effects of the following: Net income, including earnings attributable to the controlling and noncontrolling interests, is the starting point to reconcile cash flows from operating activities. To illustrate how operating cash flows (prepared on the cash basis of accounting) relate to net income (prepared on the accrual method of accounting), as discussed in ASC 230-10-45-28, the direct method also requires a reconciliation of net income to net cash flows from operating activities. The first four Exhibits show the trial balance used to develop the financial statements (statement of activities, Exhibit 2 statement of position, Exhibit 3 and statement of cash flows, Exhibit 4) for a hypothetical NFP entity using the indirect method. Transfers and servicing of financial assets There are two ways to prepare your cash flow statement: the direct method of cash flow and the indirect method of cash flow. Revenue from contracts with customers (ASC 606) Loans and investments (post ASU 2016-13 and ASC 326) Provides greater insight into which activities are.

The statement of cash flows achieves all of the following except. Financing activities can be best described as: Cash transactions associated with debt and equity financing activities. Investments in debt and equity securities (pre ASU 2016-13) All of the following would be considered financing activities except: Purchasing stocks in another company. Insurance contracts for insurance entities (pre ASU 2018-12) Insurance contracts for insurance entities (post ASU 2018-12) IFRS and US GAAP: Similarities and differences Business combinations and noncontrolling interestsĮquity method investments and joint ventures

Direct and indirect cash flow