Restricted Cash: The Skinny on ASU 2016-18

By Charles Hall | Auditing

Dec 05

FASB issued ASU 2016-18, Statement of Cash Flows, 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.)



About the Author

Charles Hall is a practicing CPA and Certified Fraud Examiner. For the last thirty-five years, he has primarily audited governments, nonprofits, and small businesses. He is the author of The Little Book of Local Government Fraud Prevention, The Why and How of Auditing, Audit Risk Assessment Made Easy, and Preparation of Financial Statements & Compilation Engagements. He frequently speaks at continuing education events. Charles consults with other CPA firms, assisting them with auditing and accounting issues.

  • Charles Hall says:

    Yes, Jim. I would only include “restricted cash” when applicable–and the notes would be silent (about restricted cash) when there is none.

  • Jim Bennett says:

    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.

  • Charles Hall says:

    Thanks Jim. I have been giving the nano option some thought. I need you to lead the way!

  • James Ulvog says:

    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.

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