Year-end toolkit: Cash flow classification
PwC's accounting podcast
Why cash flows get less control focus
Christopher explains why cash flow statements often receive less process rigor, causing restatements and issues.
We continue our year-end toolkit series sharing insights on key areas of the year-end accounting and reporting process. In this episode, we focus on the statement of cash flows—an area that remains critical to investors and continues to get focus from regulators. We discuss recent SEC comment letter observations, practical considerations for complex transactions such as debt restructurings, payment processing arrangements, and business combinations; we also highlight reminders and best practices to help companies navigate year-end reporting.
In this episode, we discuss:
- 1:05 – Overview of the statement of cash flows and key reminders
- 3:46 – SEC comment letter themes
- 7:52 – Debt restructurings
- 15:21 – Payment processing arrangements
- 20:27 – Business combinations
- 32:56 – FASB project on targeted improvements to the statement of cash flows
For more on the statement of cash flows, see Chapter 6 of our Financial statement presentation guide.
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About our guests
Suzanne Stephani is a director in PwC’s National Office specializing in the statement of cash flows as well as the application and interpretation of the accounting guidance related to financing, leasing, and foreign currency transactions.
Christopher Gerdau is a partner in PwC’s National Office specializing in accounting for financial instruments and banking-related topics. Chris also conducts technical reviews of SEC filings and provides technical support to PwC’s practice offices. Chris’s client service expertise includes the banking, capital markets, and insurance industries.
About our guest host
Diana Stoltzfus is a partner in the National Office who helps to shape PwC’s perspectives on regulatory matters, responses to rulemakings and policy development, and implementation related to significant new rules and regulations. Prior to rejoining PwC, Diana was the Deputy Chief Accountant in the Office of the Chief Accountant (OCA) at the SEC where she led the activities of the OCA’s Professional Practices Group.
Transcripts available upon request for individuals who may need a disability-related accommodation. Please send requests to us_podcast@pwc.com
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