debt instruments received from NFPs and from returns of investment in those instruments.
Receipts from sales of property, plant, and equipment and other productive assets, including directly related proceeds from insurance settlements.
Receipts from sales of loans not specifically acquired for resale, including specifically acquired for directly related proceeds from insurance settlements.
Receipts from proceeds of insurance settlements directly related to the sale or disposal of loans, debt or equity investments, or property, plant, or equipment.(ASC 230‐10‐45‐12)
Cash received as proceeds from the settlement of corporate‐owned life insurance policies (COLI), including bank‐owned life insurance (BOLI).(ASC 230‐10‐45‐21C)
Investing Activities—Cash Outflows
Payments for loans made.
Payments for acquisitions of other entities' debt instruments other than cash equivalents and certain debt instruments acquired for resale.
Payments to purchase equity of other enterprises instruments, other than certain instruments carried in a trading account.
Payments at the time of purchase, or soon before or after, of property, plant, and equipment and other productive assets, including interest capitalized as part of the cost of those assets.
Contingent consideration payments by an acquirer made soon after an acquisition's consummation date in a business combination.(ASC 230‐10‐45‐13)
Financing Activities—Cash Inflows
Proceeds from issuing equity instruments.
Proceeds from issuing debt (short‐term or long‐term), including bonds, mortgages, and notes.
Not‐for‐profits' cash receipts contributions and investment income that are donor‐restricted for long‐term purposes or for increasing a donor‐restricted endowment fund.
Proceeds from derivative instruments that include, at inception, financing elements. The proceeds may be received at inception or over the term of the instrument. Not included are a financing element inherently included in an at‐the‐market derivative instrument.(ASC 230‐10‐45‐14)
Cash receipts from the sale of donated financial assets restricted to a long‐term purchase.(ASC 230‐10‐45‐21A)
Financing Activities—Cash Outflows
Payment of dividends or other distributions to owners, including for repurchase of entity's stock.
Cash paid to a tax authority when a grantor is withholding shares from a grantee's award for tax‐withholding purposes is considered an outlay to reacquire the entity's equity instruments.
Repayment of debt principal, including payment of principle of zero coupon or relatively insignificant interest rate debt instruments.
Other payments to creditors for long‐term credit.
Distributions, to counterparties of derivative instruments that include financing elements at inception. These may be received at inception or over the term of the instrument. Not included are a financing element inherently included in an at‐the‐market derivative instrument with no prepayments.
Payments for debt issue costs.
Contingent payments up to the amount of the original contingent consideration liability by an acquirer made after three months an acquisition's consummation date in a business combination.
Payments from debt prepayment.
Payments from debt extinguishment costs.(ASC 230‐10‐45‐15)
For lessee: repayments for the principal portion of the lease liability from a financing lease.(ASC 842‐20‐45‐5a)
Other Issues Related to Classification of Cash Flows
Acquisition and Sales of Trading Debt Securities Cash receipts and payments from purchases and sales of securities that are classified in the statement of financial position as trading debt securities in accordance with Topic 320 and equity securities accounted for in accordance with Topic 321 are classified in the statement of cash flows based on the nature and purpose for which the securities were acquired. (ASC 230‐10‐45‐19)
Insurance Proceeds and Payments Proceeds from the settlement of insurance claims are classified based on the nature of each component of the loss. (ASC 230‐10‐45‐21B)
Cash payments for premiums on corporate‐owned life insurance policies (COLI), including bank‐owned life insurance (BOLI), are classified as outflows for investing or operating activities or a combination of investing or operating activities. (ASC 230‐10‐45‐21C)
Distributions Received from Equity Method Investees Upon applying the equity method, the entity must make an accounting policy election regarding the classification of distributions received from equity method investees choosing one of two approaches:
1 The cumulative earnings approach. In this approach, the investor compares the distribution received with its cumulative equity method earnings since inception. Distributions received up to the amount of cumulative earnings are a return on investment classified in operating activities. Excess distributions are considered a return on interest, classified as investing activities.
2 Nature of distribution approach. The entity classifies distributions based on the nature of the investee's activates that generated the distribution. If the information necessary to implement this approach is not available, the investor should use the cumulative earnings approach and report a change in accounting principle.(ASC 230‐10‐45‐21D)
More Than One Class of Cash Flows If a cash receipt or payment has aspects of more than one class of cash flows, entities should apply the guidance in ASC 230 and any other relevant Topic. If there is no specific guidance, classify separately each cash source or use based on the nature of the underlying cash flow. (ASC 230‐10‐45‐22) When a cash receipt or payment has aspects of more than one cash flow category that cannot be separated, it should be in the category that is likely to be the predominant source of cash flows. (ASC 230‐10‐45‐22A)
Discontinued Operations The disclosure requirements relevant to discontinued operations and related cash flows can be found in ASC 205‐20‐50‐5B(c). (ASC 230‐10‐45‐24A)
Noncash Investing and Financing Activities The effects of investing and financing investing or operating activities that do not result in receipts or payments of cash should be reported in a separate schedule immediately following the statement of cash flows or in the notes to the financial statements in narrative or tabular format. (ASC 230‐10‐50‐3) This is to preserve the statement's primary focus on cash flows from operating, investing, and financing activities. Examples of noncash investing and financing activities include:
Converting debt to equity.
Acquiring
