This chapter discusses the concepts that guide classification within the statement of cash flows. Proper presentation begins with understanding what qualifies as cash and cash equivalents, including restricted cash and cash equivalents, and what does not. From there, classifying cash flows as operating, investing, or financing can often be a challenge, especially for cash flows related to non-recurring transactions. A further challenge exists in determining what is and what is not a cash flow; noncash activities and the foreign currency effects on cash introduce additional complexity. The following sections explore these topics and provide examples and considerations that will offer financial statement preparers and users insight into appropriate presentation of the statement of cash flows in accordance with US GAAP.
PwC. All rights reserved. PwC refers to the US member firm or one of its subsidiaries or affiliates, and may sometimes refer to the PwC network. Each member firm is a separate legal entity. Please see www.pwc.com/structure for further details. This content is for general information purposes only, and should not be used as a substitute for consultation with professional advisors.