Lessee’s amortization of right-of-use assets (see FSP 6.9.Depreciation and amortization relating to fixed assets, definite-lived intangible assets, capital leases, premiums, or discounts on debt (including debt issuance costs).Adjustments for noncash items in the reconciliation of net income to net cash flows from operating activities may include items such as:.In addition, as discussed in ASC 230-10-50-2, when the indirect method is used, amounts of interest paid (net of amounts capitalized) and income taxes paid during the period must be disclosed, either on the face of the statement of cash flow or in the footnotes. It is arguably more difficult to calculate because the true cost and value of things like intellectual property and brand recognition are not fixed. Instead, only the reconciliation of net income to net operating activities, as described above, is reported. Amortization refers to the act of depreciation when it comes to intangible assets. As discussed in ASC 230-10-45-25 and ASC 230-10-45-28, when the indirect method is used, a reporting entity does not report the gross cash receipts and gross payments required by the direct method.All items included in net income that do not affect operating cash receipts and payments (for example, all items for which cash effects are related to investing or financing activities (e.g., depreciation, amortization, gains or losses on dispositions of long-lived assets, and foreign currency gains and losses from the retirement of foreign denominated debt)).All deferrals of past operating cash receipts and payments, and all accruals of expected future operating cash receipts and payments (for example, changes during the period in receivables and payables pertaining to operating activities).The reconciliation removes the effects of the following: Depreciation expense on cash flow statement example. Net income, including earnings attributable to the controlling and noncontrolling interests, is the starting point to reconcile cash flows from operating activities. To illustrate how operating cash flows (prepared on the cash basis of accounting) relate to net income (prepared on the accrual method of accounting), as discussed in ASC 230-10-45-28, the direct method also requires a reconciliation of net income to net cash flows from operating activities. Transfers and servicing of financial assets
Revenue from contracts with customers (ASC 606) Loans and investments (post ASU 2016-13 and ASC 326)
Investments in debt and equity securities (pre ASU 2016-13) Insurance contracts for insurance entities (pre ASU 2018-12) Insurance contracts for insurance entities (post ASU 2018-12) IFRS and US GAAP: Similarities and differences Business combinations and noncontrolling interestsĮquity method investments and joint ventures
0 kommentar(er)
