ASC 230 STATEMENT OF CASH FLOWS

Accounting Standards Codification (ASC) 230, Statement of Cash Flows , contains one subtopic: ASC 230-10, Overall , that establishes standards for cash flow reporting in general purpose financial statements. A statement of cash flows is a required part of a complete set of financial statements for business enterprises and not-for-profit organizations. The statement of cash flows requires classification of cash receipts and cash disbursements into three categories: investing activities, financing activities, and operating activities. The operating activities section of the statement of cash flows can be presented under the direct method or the indirect method. Operating activities generally involve producing and delivering goods and providing services. Cash flows from operating activities are generally the cash effects of transactions and other events that enter into the determination of net income.