![]() Interest income is considered received when the bank posts the entry to a reporting entity’s account. Interest and dividend receipts related to investments in other reporting entities or deposits with financial institutions (i.e., returns on investment).Receipts from customers for sales of goods and/or services, as well as receipts from short-term and long-term receivables under normal trade terms that arose from sales of goods and/or services.Net presentation for these cash flows may be permittedĪs discussed in ASC 230-10-45-16 to ASC 230-10-45-17, common examples of operating cash flows are: Cash inflows and outflows associated with repurchase agreements, including transactions accounted for as a securitized borrowing.Cash proceeds received as collateral under a securities lending program and subsequent repayment of the cash, because the cash received is considered a borrowing.If a reporting entity has a "bank overdraft" at year end, the change in bank overdrafts during the period (see FSP 6.5.1.1 for further discussion).Cash activity related to stock subscriptions receivable.Cash dividends and purchases of treasury stock.Stock issuance proceeds, net of stock issuance costs.The incurrence of that debt is a noncash financing transaction. Payments on seller-financed debt related to the purchase of property, plant, and equipment and other productive assets.Proceeds from failed sale-leaseback transactions.Payments for debt prepayment or debt extinguishment costs (see FSP 6.9.9 for further discussion).Payments for debt issue costs (i.e., third party costs).Cash collected subsequent to sales of financial assets from the seller/transferor's interest in sold trade receivables, commonly referred to as a holdback or deferred purchase price (see FSP 6.9.14 for further discussion)Īs discussed in ASC 230-10-45-14 to ASC 230-10-45-15, the following items should be classified as financing activities:.Proceeds from the settlement of corporate-owned life insurance policies, including bank-owned life insurance policies (see FSP 6.9.23 for further discussion).Cash flows should continue to be classified as cash flows from investing activities, even if the reporting entity subsequently reclassifies the loans as held for sale Cash flows resulting from acquisitions and sales of loans originally classified as loans held for long-term investment should be investing activities.Cash outflows and inflows associated with reverse repurchase agreements. ![]()
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