The Skinny on ASU 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash

If a company has restricted cash, your cash flow statement will change

FASB issued ASU 2016-18, Statement of Cash Flows, in November 2016. This standard changes the way restricted cash is shown in cash flow statements.

Here’s the skinny on the new standard. (To download the slidedeck, click here.)


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  • Good summary. Thanks.

    Also, at 7 minutes length, this is a great illustration of what a 0.1 hour CPE micro-learning class might look like.

  • Thanks Charles – for clients without any restricted cash, I assume there will be no mention of restricted cash? At first, I thought we should just go ahead and change the last line on all cash flow statements to Total Cash, Cash Equivalents and Restricted Cash – but then I thought that it wouldn’t really be a good idea for entities without restricted cash.

    • Charles Hall says:

      Yes, Jim. I would only include “restricted cash” when applicable–and the notes would be silent (about restricted cash) when there is none.