Cash Flow Statement Data Element Presentation

Staff in the Commission's Division of Economic and Risk Analysis reviewed certain Forms 10-Q and Forms 10-K filed in 2023 to evaluate whether filers’ cash flow statement data element presentation structure (e.g., parent and descendant relationship) is organized correctly. Cash flow statement presentation structure includes three parents: i) the Net Cash Provided by or Used in the Operating Activities Abstract; ii) the Financing Activities Abstract; and iii) the Investing Activities Abstract. Staff has observed that some filers incorrectly included elements in one of the three presentation abstracts that are not the descendants of that abstract under the U.S. GAAP Taxonomy. For example, the Income Taxes Paid element and the Effect of Exchange Rate on Cash Equivalents, Restricted Cash and Restricted Cash Equivalents element should not be presented as descendants of the Financing Activities Abstract. As another example, the Repayments of Long-Term Debt element should not be presented as a descendant of the Investing Activities Abstract.

Proper presentation structure is necessary as it facilitates locating and grouping of the elements. Filers are encouraged to carefully review the parent and descendant relationship reflected in the presentation structure of the cash flow statement to ensure the correctness of the presentation.

For more data quality reminders, see Staff Observations and Guidance.