Stakeholders indicated that there is diversity
in practice in how certain cash receipts and cash payments are presented
and classified in the statement of cash flows under Topic 230, Statement
of Cash Flows, and other Topics.
This Accounting Standards Update addresses the
following eight specific cash flow issues: Debt prepayment or debt
extinguishment costs; settlement of zero-coupon debt instruments or
other debt instruments with coupon interest rates that are insignificant
in relation to the effective interest rate of the borrowing; contingent
consideration payments made after a business combination; proceeds
from the settlement of insurance claims; proceeds from the settlement
of corporate-owned life insurance policies (COLIs) (including bank-owned
life insurance policies (BOLIs)); distributions received from equity
method investees; beneficial interests in securitization transactions;
and separately identifiable cash flows and application of the predominance
The amendments in this Update apply to all entities,
including both business entities and not-for-profit entities that
are required to present a statement of cash flows under Topic 230.
This Update is the final version of Proposed
Accounting Standards Update EITF-15F—Statement of Cash Flows—Classification of Certain Cash Receipts
and Cash Payments (Topic 230), which has been deleted.
Accounting Standards Update No. 2016-15
Issued: August 26, 2016