We understand the specialized markets in which you operate and provide tailored solutions to meet your unique business needs.
Our comprehensive suite of business services combines industry expertise, market knowledge and professional insights.
MNP is a leading national accounting, tax and business consulting firm in Canada.
403.444.0150
Suite 2000, 330 5th Ave. S.W. Calgary, AB T2P 0L4
MNP careers are Different by Design. As an entrepreneurial firm, we truly believe there are no limits to where your career can go.
On November 17, 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2016-18 Statement of Cash Flows (Topic 230): Restricted Cash. The ASU seeks to reduce the diversity in practice by providing guidance on the classification and presentation of changes in restricted cash on the statement of cash flows. Particularly, clarifications are made to highlight the appropriate treatment for:
This ASU requires that a statement of cash flows explain the change during the period in the total of cash, cash equivalents and restricted cash or restricted cash equivalent accounts. Therefore, restricted cash and restricted cash equivalents should be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. Receipts and payments of, and transfers in or out of, restricted cash are part of an entity’s cash management activities rather than its operating, investing and financing activities.
The amendments are effective as follows:
Earlier adoption is allowed for all entities, including adoption in an interim period. If early adopting in an interim period, any adjustments should be reflected as of the beginning of the fiscal year that includes that interim period. The amendments in this ASU should be applied using a retrospective transition method to each period presented.
To access the full script of ASU No. 2016-18, click here.
This communication contains a general overview of the topic and is current as of December 30, 2016. The application of the principles addressed will depend upon the particular facts and circumstances of each individual case. Accordingly, this publication is not a substitute for professional advice and we recommend that any decisions you take about the application or not of any of the information presented be made in consultation with a qualified professional, who can address any variance that may be required to reflect your circumstances. Please contact your local MNP representative for customized assistance with the application of this material. MNP LLP accepts no responsibility or liability for any loss related to any person's use of or reliance upon this material. © MNP LLP 2016. All rights reserved.
Categories:US GAAP
Tags:Alerts
Publication Date:31/12/2016