{"id":2795,"date":"2023-12-07T09:17:08","date_gmt":"2023-12-07T14:17:08","guid":{"rendered":"https:\/\/seci.wpenginepowered.com\/?p=2795"},"modified":"2023-12-07T09:17:12","modified_gmt":"2023-12-07T14:17:12","slug":"chief-accountant-issues-statement-addressing-the-statement-of-cash-flows","status":"publish","type":"post","link":"https:\/\/seciblog.pli.edu\/index.php\/chief-accountant-issues-statement-addressing-the-statement-of-cash-flows\/","title":{"rendered":"Chief Accountant Issues Statement Addressing the Statement of Cash Flows"},"content":{"rendered":"<p>On December 4, 2023, SEC Chief Accountant Dr. Paul Munter issued a Statement titled \u201c<a href=\"https:\/\/www.sec.gov\/news\/statement\/munter-statement-cash-flows-120423#_ftn3\">The Statement of Cash Flows: Improving the Quality of Cash Flow Information Provided to Investors<\/a>.\u201d\u00a0 In his introduction Dr. Munter notes:<\/p>\n<p style=\"padding-left: 40px;\">\u201cUnfortunately, we have observed that preparers and auditors may not always apply the same rigor and attention to the statement of cash flows as they do to other financial statements, which may impede high quality financial reporting for the benefit of investors.\u201d<\/p>\n<p>He also discusses the importance of cash flow information to investors and that the statement of cash flows has consistently been one of the higher frequency areas of restatements.<\/p>\n<p>The statement addresses several statement of cash flow considerations including:<\/p>\n<ul>\n<li style=\"list-style-type: none;\">\n<ul>\n<li>Materiality;<\/li>\n<li>The importance of proper classification;<\/li>\n<li>How misclassification in the statement of cash flows can be material and lead to \u201cBig R\u201d restatements;<\/li>\n<li>Internal control considerations;<\/li>\n<li>The potential advantages of using the direct method to present cash from operating activities;<\/li>\n<li>The FASB\u2019s project to make targeted improvements to the statement of cash flows; and<\/li>\n<li>Focus points for auditors as they examine cash flow information.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p>Dr. Munter\u2019s conclusion makes the point:<\/p>\n<p style=\"padding-left: 40px;\">\u201cThe statement of cash flows represents a critical piece of a complete picture of an issuer\u2019s financial health and operations. Issuers and auditors have a responsibility, under securities laws and professional standards, to apply the same high level of care and professionalism to the preparation, review, and audit of the statement of cash flows as is required for the other financial statements.\u201d<\/p>\n<p>As always, your thoughts and comments are welcome!<\/p>\n","protected":false},"excerpt":{"rendered":"<p>On December 4, 2023, SEC Chief Accountant Dr. Paul Munter issued a Statement titled \u201cThe Statement of Cash Flows: Improving the Quality of Cash Flow Information Provided to Investors.\u201d\u00a0 In his introduction Dr. Munter notes: \u201cUnfortunately, we have observed that preparers and auditors may not always apply the same rigor and attention to the statement &hellip; <a href=\"https:\/\/seciblog.pli.edu\/index.php\/chief-accountant-issues-statement-addressing-the-statement-of-cash-flows\/\" class=\"more-link\">Continue reading <span class=\"screen-reader-text\">Chief Accountant Issues Statement Addressing the Statement of Cash Flows<\/span> <span class=\"meta-nav\">&rarr;<\/span><\/a><\/p>\n","protected":false},"author":9,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2},"_wpas_customize_per_network":false},"categories":[143,242],"tags":[],"coauthors":[154],"class_list":["post-2795","post","type-post","status-publish","format-standard","hentry","category-hot-topic","category-reporting"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"post_mailing_queue_ids":[],"_links":{"self":[{"href":"https:\/\/seciblog.pli.edu\/index.php\/wp-json\/wp\/v2\/posts\/2795","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/seciblog.pli.edu\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/seciblog.pli.edu\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/seciblog.pli.edu\/index.php\/wp-json\/wp\/v2\/users\/9"}],"replies":[{"embeddable":true,"href":"https:\/\/seciblog.pli.edu\/index.php\/wp-json\/wp\/v2\/comments?post=2795"}],"version-history":[{"count":0,"href":"https:\/\/seciblog.pli.edu\/index.php\/wp-json\/wp\/v2\/posts\/2795\/revisions"}],"wp:attachment":[{"href":"https:\/\/seciblog.pli.edu\/index.php\/wp-json\/wp\/v2\/media?parent=2795"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/seciblog.pli.edu\/index.php\/wp-json\/wp\/v2\/categories?post=2795"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/seciblog.pli.edu\/index.php\/wp-json\/wp\/v2\/tags?post=2795"},{"taxonomy":"author","embeddable":true,"href":"https:\/\/seciblog.pli.edu\/index.php\/wp-json\/wp\/v2\/coauthors?post=2795"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}