Project Update

EITF Issue No. 16-A: Restricted Cash

Last updated on November 18, 2016. 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 and Background
*Due Process Documents
Decisions Reached at Last Meeting
EITF/Board Meeting Dates
Contact Information

Project Objective and Background

In April 2014, the Board decided to add a statement of cash flows project to the FASB's technical 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 existing principles in Topic 230, Statement of Cash Flows.

At its April 1, 2015 meeting, the Board decided that clarifying certain existing principles within Topic 230 only would incrementally reduce diversity in practice about the classification of cash receipts and cash payments. Therefore, the Board decided to have the Task Force consider nine specific cash flow classification issues with the goal of reducing the existing diversity in practice on those issues on a timely basis. Eight of those issues are being addressed in EITF Issue No. 15-F, "Statement of Cash Flows: Classification of Certain Cash Receipts and Cash Payments." The ninth issue, which relates to restricted cash and restricted cash equivalents, was previously included in Issue 15-F and is now being addressed in Issue 16-A.

Significant diversity exists in the classification and presentation of changes in restricted cash on the statement of cash flows. Entities currently classify the changes in operating, investing, or financing activities, or in a combination thereof.

* Due Process Documents

On April 28, 2016, the Board issued proposed Accounting Standards Update, Statement of Cash Flows (Topic 230): Restricted Cash (a consensus of the FASB Emerging Issues Task Force). The comment deadline was June 27, 2016. On November 17, 2016, the Board completed this project with the issuance of Accounting Standards Update No. 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash.

Decisions Reached at Last Meeting (October 5, 2016)

The Board ratified the consensus reached at the September 22, 2016 EITF Meeting. The Board directed the staff to draft a final Accounting Standards Update reflecting the consensus for vote by written ballot.

EITF/Board 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.

October 5, 2016
Board Meeting
EITF Ratification Minutes
September 22, 2016
EITF Meeting
EITF Meeting Minutes
Issue Summary No.1, Supplement No. 1
April 20, 2016
Board Meeting
EITF Ratification Minutes
March 3, 2016
EITF Meeting
EITF Meeting Minutes
Issue Summary No. 1
December 11, 2015
Board Meeting
Decision to add Issue 16-A
November 12, 2015
EITF Meeting
EITF Meeting Minutes
Issue Summary No. 1, Supplement No. 2
September 17, 2015
EITF Meeting
EITF Meeting Minutes
Issue Summary
June 18, 2015
EITF Meeting
EITF Meeting Minutes
Issue Summary
May 14, 2015
EITF Education Session
EITF Education Session Slides EITF Issue 15-F
April 1, 2015
Board Meeting
Board Meeting—Discussion about the clarification of certain existing principles
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

Contact Information

Rob Moynihan
EITF Coordinator
rmoynihan@fasb.org

Jenifer Wyss
Project Manager
jjwyss@fasb.org

Andrew McClaskey
Postgraduate Technical Assistant
awmcclaskey@fasb.org

Aishat Akinwale
Postgraduate Technical Assistant
aakinwale@fasb.org