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Per ASC 852-10-45-13, reorganization items should be disclosed separately within the operating, investing, and financing categories of the statement of cash flows. Supplemental cash flow disclosures might also be required.

ASC 852-10-45-13

Reorganization items shall be disclosed separately within the operating, investing, and financing categories of the statement of cash flows. This presentation can be better accomplished by the use of the direct method of presenting the statement. Paragraph 230-10-45-25 lists the operating items that shall be reported separately when the direct method is used. That paragraph encourages further breakdown of those operating items if the entity considers such a breakdown meaningful and feasible. Further identification of cash flows from reorganization items should be provided to the extent feasible. For example, interest received might be segregated between estimated normal recurring interest received and interest received on cash accumulated because of the reorganization. If the indirect method is used, details of operating cash receipts and payments resulting from the reorganization shall be disclosed in a supplementary schedule or in the notes to financial statements.

The cash flows associated with principal and interest payments on debtor-in-possession financing should not be separated as reorganization items in the statement of cash flows. The reasons are that financing is required to fund the reporting entity's ongoing activities while carrying out the reorganization plan and the debtor-in-possession financing is not classified as a liability subject to compromise.
Reorganization items paid or received during the period that are classified as operating cash flows should be separately disclosed. Reorganization items that are noncash adjustments should be disclosed in the statement of cash flows or notes to the financial statements. Investing and financing cash flows from reorganization items are usually presented on the face of the statement of cash flows.

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