By John E. Kent, Jr., CPA, Director
By John E. Kent, Jr., CPA, Business Assurance & Advisory Service Partner | Not-for-Profit Team
In November 2016, the Financial Accounting Standards Board (FASB) issued ASU 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash.
This new standard addresses the presentation and classification of changes in restricted cash in the statement of cash flows. This ASU applies to all entities with restricted cash that are required to present a statement of cash flows. It is effective for not-for-profit organizations for fiscal years beginning after December 15, 2018. Early adoption is permitted.
The ASU requires an explanation of the change during the period in total cash, cash equivalents, and amounts described as restricted cash or restricted cash equivalents to be provided in the statement of cash flows. As such, amounts generally described as restricted cash or restricted cash equivalents are required to be included with cash and cash equivalents when reconciling the beginning and end of year total amounts presented on the statement of cash flows.
Questions on the new standard? Contact your Keiter representative or our Not-for-Profit team | Email | 804.747.0000
About the Author
John E. Kent, Jr., CPA, Director
John is the Quality Control Director at Keiter and has more than 30 years of experience in public accounting providing auditing and business consulting services to clients in the retail, manufacturing, construction, and not-for-profit industries. During his tenure, he specialized in benefit plan audits, mergers and acquisitions, business planning, and financing. His experience includes designing and implementing cost accounting and inventory control systems for multi-industry companies, conducting LIFO inventories, conducting quality of earnings reviews, and assisting clients with adopting new accounting standards. Read more of John’s insights on our blog.
More Insights from John E. Kent, Jr.The information contained within this article is provided for informational purposes only and is current as of the date published. Online readers are advised not to act upon this information without seeking the service of a professional accountant, as this article is not a substitute for obtaining accounting, tax, or financial advice from a professional accountant.
