Tidying Up the Statement of Cash Flows

A Summary of the FASB's New Cash Flow Guidance in ASU 2016-15

On August 26, 2016, the FASB issued ASU 2016-15, which provides greater clarity to preparers on the treatment of eight specific items within an entity's statement of cash flows. The goal of the new standard is to reduce the current diversity in practice related to these eight items (click here to read the full article).

The new guidance becomes effective for fiscal periods, including interim periods, beginning after December 15, 2017. Nonpublic business entities receive a one-year deferral. Early adoption is permitted.

The guidance in ASU 2016-15 applies retrospectively to all periods presented, unless it is impracticable to do so.

How DHG Can Help

DHG's accounting readiness team is positioned to help companies evaluate how new accounting standards will impact their financial reporting, including disclosures, accounting processes and controls, and other areas of the business. We work with companies to help them 1) understand the accounting requirements, 2) assess how the guidance impacts their business and 3) get the accounting right.

Contact Us

Louis Mannello, Partner | Risk Advisory
704.367.5940 | louis.mannello@dhg.com