The Financial Accounting Standards Board has approved a new update to accounting standards meant to clear up inconsistencies in how companies present and classify cash flows.
Accounting Standards Update No. 2016-15 is a refresh to Topic 230 of the Accounting Standards Codification to address eight separate cash flow classification and presentation issues. FASB says historic GAAP is either unclear or doesn’t provide specific guidance on the eight separate issues, leading to differences in how companies arrive at their own interpretations.
