Project Update

EITF Issue No. 15-F: Statement of Cash Flows: Classification of Certain Cash Receipts and Cash Payments

Last updated on May 29, 2015. Please refer to the Current Technical Plan for information about the expected release dates of exposure documents and final standards.

(Updated sections are indicated with an asterisk *)

The staff has prepared this summary of Board decisions for information purposes only. Those Board decisions are tentative and do not change current accounting. Official positions of the FASB are determined only after extensive due process and deliberations.

Project Objective
Due Process Documents
*Decisions Reached at Last Meeting
Next Steps
*Board/Other Public Meeting Dates
Background Information
Contact Information

Project Objective

The project is intended to reduce diversity in practice in financial reporting by providing classification guidance on certain cash receipts and cash payments.

Due Process Documents

The FASB has not issued any due process documents related to this project.

*Decisions Reached at Last Meeting (May 14, 2015)

The EITF discussed this Issue at its Education Session. No technical decisions were made.

Next Steps

The EITF will deliberate issues related to this project at its next meeting on June 18, 2015.

*Board/Other Public Meeting Dates

The EITF and Board meeting minutes are provided for the information and convenience of constituents who want to follow the EITF’s and Boards' deliberations. All of the conclusions reported are tentative and may be changed at future EITF or Board meetings. Decisions become final only after a formal written ballot to issue a final standard.

*May 14, 2015
EITF Education Session
EITF Education Session Slides EITF Issue 15-F
April 28, 2014
Board Meeting
Board Meeting—Agenda prioritization meeting about whether to add a project to the Board’s agenda
April 23, 2014
Board Meeting
Education Session—Preliminary research and findings on specific cash flow classification issues within the statement of cash flows
April 1, 2015
Board Meeting
Board Meeting—Discussion about the clarification of certain existing principles

Background Information

In November 1987, FASB issued FASB Statement No. 95, Statement of Cash Flows. Statement 95 was later codified in Topic 230, Statement of Cash Flows. The Board has received feedback from constituents indicating that there is diversity in practice regarding the application of Topic 230.

The staff’s research indicated that there was diversity in practice with respect to the classification of certain cash receipts and payments. The staff’s research also indicated that the primary reasons for the diversity in classification is the result of lack of specific accounting guidance and inconsistent application of the existing principles within Topic 230.

At its April 28, 2014 meeting, the Board voted to add a project to its agenda. The project, Clarifying Certain Existing Principles on Statement of Cash Flows, was intended to reduce diversity in practice in financial reporting by clarifying certain principles in Topic 230.

At its April 1, 2015 meeting, the Board decided that clarifying certain existing principles within Topic 230 would only incrementally reduce diversity in practice about the classification of cash receipts and cash payments. Therefore, the Board decided to have the Emerging Issues Task Force (EITF) consider nine specific cash flow issues with the goal of reducing the existing diversity in practice on a timely basis.

The nine specific issues to be addressed by the EITF include the classification of cash flows related to:

June 18, 2015 EITF Meeting
Issue 1 – Debt Prepayment or Debt Extinguishment Costs
Issue 2 – Settlement of Zero-coupon Bonds
Issue 3 – Contingent Consideration Payments Made After a Business Combination
Issue 4 – Restricted Cash
Issue 5 – Proceeds from the Settlement of Insurance Claims
Issue 6 – Proceeds from the Settlement of Corporate-Owned Life Insurance Policies

September 17, 2015 EITF Meeting
Issue 7 – Distributions Received from Equity Method Investees
Issue 8 – Beneficial Interests in Securitization Transactions
Issue 9 – Predominant Cash Receipts and Cash Payments


*Contact Information

Jennifer Hillenmeyer
EITF Coordinator

Jenifer Wyss
Project Manager

Jane Rizzuto
Postgraduate Technical Assistant