Companies looking for direction on how to correct cash flow classifications now have more definitive guidance, following the Securities and Exchange Commission’s decision last week to make a speech on the subject and accompanying slides more widely available.
The SEC has posted on its Web site the text of a speech delivered by Associate Chief Accountant Joel Levine at the December gathering of the American Institute of Certified Public Accountants. In that speech, Levine alerted accountants that the agency doesn’t approve of how companies have been classifying cash flow related to discontinued operations. Until last week, the SEC had said the text of Levine’s speech was unavailable.
