The Financial Accounting Standards Board has published a new update to accounting standards to shore up diversity in how companies have classified and presented changes in restricted cash and a new proposal on stock compensation.
Accounting Standards Update No. 2016-18 require that the statement of cash flow explain changes in total cash, cash equivalents, and any amounts described as restricted cash or restricted cash equivalents. That means amounts described as restricted cash or restricted cash equivalents must be included with cash and cash equivalents when reconciling the beginning and ending amounts shown in the statement of cash flows.
