Restricted Cash: The Skinny on ASU 2016-18

FASB issued ASU 2016-18, Statement of Cash Flows,ย in November 2016. This standard changes the way restricted cash is shown in cash flow statements.
The standard is effective in 2019 for calendar year-end private companies. Early adoption is permitted
Here’s the skinny on the new standard. (To download the slidedeck, click here. The video below was created before I changed the name of my blog from CPA Scribo to CPA Hall Talk, but the information is current.)
Yes, Jim. I would only include “restricted cash” when applicable–and the notes would be silent (about restricted cash) when there is none.
Thanks Charles – for clients without any restricted cash, I assume there will be no mention of restricted cash? At first, I thought we should just go ahead and change the last line on all cash flow statements to Total Cash, Cash Equivalents and Restricted Cash – but then I thought that it wouldn’t really be a good idea for entities without restricted cash.
Thanks Jim. I have been giving the nano option some thought. I need you to lead the way!
Good summary. Thanks.
Also, at 7 minutes length, this is a great illustration of what a 0.1 hour CPE micro-learning class might look like.