Various stakeholders have notified the Financial Accounting Standards Board (FASB) that there is diversity in practice in how certain cash receipts and payments are presented and classified in the statement of cash flows. This article by MSI's Washington D.C. accounting member Rubino & Company, Chartered reports on the Accounting Standard Updates (ASU) 2016-15 issued by the FASB.
The FASB has issued Accounting Standard Update (ASU) 2016-15 to address eight specific cash flow issues to reduce the existing diversity in practice.