Year-end toolkit: Clarifying the classification of cash flows

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In each episode of our Year-end toolkit series, our guests share insights on key areas of the year-end accounting and reporting process. The conversations are relevant for all finance teams, even if it’s not year-end close time. And it’s relevant even for those not engaged in the company’s closing process – the episodes have something for everyone.

This episode covers the statement of cash flows - what statement of cash flow areas the SEC is focusing on, why it remains a frequent area of restatement, and the most commonly asked questions our team is seeing in practice.

In this episode, we discuss:

• 4:11 – Key takeaways from the 2024 AICPA/SEC Conference
• 9:43 – Funds held on behalf of others and assessing predominance
• 18:48 – Non-cash transactions, constructive receipt and disbursement, and the cash flow treatment of cryptocurrency
• 28:50 – Gross versus net cash flows and cash flow treatment of: excise taxes, insurance recoveries, and debt restructuring
• 39:30 – FASB project on the statement of cash flows for financial institutions

For more on the statement of cash flow presentation, see Chapter 6 – Statement of cash flows in PwC’s Financial statement presentation guide.

Bret Dooley is a PwC National Office Deputy Chief Accountant who leads teams focused on the financial services sectors and accounting for financial instruments. He has over 25 years of experience in the financial services, banking, and capital markets industries. Bret focuses on emerging financial reporting issues related to financial instruments, developing interpretive guidance, and assisting clients in resolving complex accounting matters

Suzanne Stephani is a director in PwC’s National Office specializing in the statement of cash flows, as well as the application and interpretation of the accounting guidance related to financing and leasing transactions.

About our host

Guest host Kyle Moffatt is PwC’s Professional Practice leader, leading a team responsible for working with standard setters and regulators as well as delivering brand-defining thought leadership and educational materials. He also consults with engagement teams and audit clients on SEC reporting matters. Before PwC, Kyle spent almost 20 years with the SEC, most recently as Chief Accountant and Disclosure Program Director in the Division of Corporation Finance.

Transcripts available upon request for individuals who may need a disability-related accommodation. Please send requests to [email protected].