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

By Charles Hall | Auditing

Dec 05

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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About the Author

Charles Hall is a practicing CPA and Certified Fraud Examiner. For the last thirty years, he has primarily audited governments, nonprofits, and small businesses.He is the author of The Little Book of Local Government Fraud Prevention and Preparation of Financial Statements & Compilation Engagements. He frequently speaks at continuing education events.Charles is the quality control partner for McNair, McLemore, Middlebrooks & Co. where he provides daily audit and accounting assistance to over 65 CPAs. In addition, he consults with other CPA firms, assisting them with auditing and accounting issues.

  • 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.

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