Description
The cash flow statement may be the most complex and least understood of the primary financial statements. It is wrought with choices and classification issues that practitioners must consider. The first hurdle is defining cash. According to ASC 230, cash includes "not only currency on hand but demand deposits with banks or other financial institutions." Also considered cash are cash equivalents that are: "(a) Readily convertible to known amounts of cash (b) So near their maturity that they present insignificant risk of changes in value because of changes in interest rates." Additionally, cash could be restricted or not and should be reported accordingly.
Once accountants determine what is included as cash, they must decide whether the indirect or direct method is better or required. Then, each cash transaction must be reported within the appropriate section of the statement, either investing, financing, or operating. The classification of an item is not always easily determined, and transactions can appear in more than one section. The purchase of a business, the sale of equipment or property, and theft or casualty losses can be difficult to classify. Perhaps the most troublesome aspect comes after all transactions are classified, and the accountant has a draft of the cash flow statement. The statement itself must reconcile and reconcile with the other financial statements presented.
Listen as our panel of A&A experts guides accounting and auditing professionals through preparing cash flow statements with a particular emphasis on reconciling this intricate statement.
Presented By
Ms. Hampton has over 12 years of experience in public accounting, providing audits, reviews, compilations, and preparations of financial statements to clients in various industries. She is certified as a Peer Review Captain and works with the peer review team to provide value to firms around the country. In addition to these services, Ms. Hampton has several years of experience in solutions and tax and provides support to clients in these areas. Her industry focus includes government contracting, employee benefit plans, construction, and not-for-profit agencies.
Mr. Sledge, CPA, MAcc, brings over three decades of experience in audit, technical accounting, and leadership. Throughout his distinguished career, he has been recognized as a strategic problem-solver with deep expertise in financial statement audits, risk assessment, and client service team leadership. Mr. Sledge's background includes working with organizations of all sizes, from startups to large public companies, often within private equity ownership structures. He has a strong technical foundation in complex accounting matters such as business combinations, stock-based compensation, income taxes, and equity and debt transactions. Mr. Sledge's leadership extends beyond client engagements—he has mentored numerous professionals, facilitated training and CPE programs, and contributed to internal quality review programs to ensure compliance with professional standards.
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BARBRI is a NASBA CPE sponsor and this 110-minute webinar is accredited for 2.0 CPE credits.
Date + Time
- event
Monday, November 3, 2025
- schedule
1:00 p.m. ET./10:00 a.m. PT
I. Introduction: purpose of cash flow statements
II. Guidance—FASB ASC 230 Statement of Cash Flows
III. Methods
A. Direct
B. Indirect
IV. Sections of the cash flow statement
V. Special items
VI. Disclosures
VII. Reconciliation and worksheets
VIII. Common errors
IX. Illustrative examples
The panel will cover these and other critical issues:
- Reconciling the entries of the cash flow statement
- When the direct method should be selected for preparation of the cash flow statement
- Common errors to avoid when preparing the cash flow statement
- Reporting special items on the cash flow statement
- Required cash flow statement disclosures
Learning Objectives
After completing this course, you will be able to:
- Determine steps to expedite completion of the cash flow statement
- Identify components of the financial section of the cash flow statement
- Decide when the direct method must be used for the cash flow statement
- Ascertain how to classify certain complex transactions on the statement of cash flows
- Field of Study: Accounting
- Level of Knowledge: Intermediate
- Advance Preparation: None
- Teaching Method: Seminar/Lecture
- Delivery Method: Group-Internet (via computer)
- Attendance Monitoring Method: Attendance is monitored electronically via a participant's PIN and through a series of attendance verification prompts displayed throughout the program
- Prerequisite:
Three years+ business or public firm experience, preparing reviewed, compiled, and audited financial statements and the relative disclosures. Specific knowledge and understanding of GAAP, SSARS, and peer review policies.
BARBRI is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of Accountancy have final authority on the acceptance of individual courses for CPE Credits. Complaints regarding registered sponsons may be submitted to NASBA through its website: www.nasbaregistry.org.
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