The Financial Accounting Standards Board has asked its Emerging Issues Task Force to dig into some of the complexities around cash flow classifications to see if it can suggest some changes to existing guidance to make this area of accounting more straightforward.
FASB opened a project in spring 2014 to see what can be done to clarify the principles in Accounting Standards Codification Topic 230, which governs the statement of cash flows, to reduce the diversity in practice in how companies classify cash receipts and cash payments. FASB staff performed research into possible additional guidance on how and what an entity should consider in determining classifications, and some possible additional disclosures.
