There is no general requirement within US GAAP ... IFRS permits the presentation of additional line items, headings and subtotals in … Disclosure of performance measures . should be made in accordance with IAS 1 ‘Presentation of Financial Statements’. FASB Issues Guidance on Restricted Cash by Stephen McKinney, Deloitte & Touche LLP Introduction Today, the FASB issued ASU 2016-18,1 which amends ASC 2302 to add or clarify guidance on the classification and presentation of restricted cash in the statement of cash flows. The classification of restricted cash in the statement of cash flows, along with eight other cash-flow … Introduction. If a client money arrangement results in recognising cash at a bank as an asset and an associated liability to a client, it will not be appropriate to offset those items in most circumstances. ASU 2016-15, Classification of Certain Cash Receipts and Cash Payments ASU 2016-18 , Restricted Cash Updated for ASU 2018-07 and ASU 2019-01 and other practice issues such as leases, derivatives and debt arrangements Interaction with IAS 1 IAS 1 Presentation of Financial Statements paragraph 66(d) requires an entity to classify an asset as current when: ‘… the asset is cash or a cash equivalent (as defined in IAS 7) unless the asset is restricted from being exchanged or used to September 2009 Page 8 Introduction to International Financial Reporting Standards ... to the presentation or classification of items in the current period, and details of changes disclosed ... cash or a cash equivalent asset that is not restricted as to its use Presentation of restricted cash on balance sheet If the restricted cash balance is material, then this balance is shown separately from cash and cash equivalents on the balance sheet. 2. There is no guidance under IFRS that addresses the presentation of restricted cash on the statement of cash flows. Today, the FASB issued ASU 2016-18, 1 which amends ASC 230 2 to add or clarify guidance on the classification and presentation of restricted cash in the statement of cash flows. FASB Clarifies Restricted Cash Presentation Download PDF Version Summary The FASB recently issued ASU 2016-18 1 to clarify the presentation of restricted cash in the statement of cash flows. ‘restricted cash and cash equivalents’. 3.1. Published on: 17 Nov 2016 Volume 23, Issue 29. by Stephen McKinney, Deloitte & Touche LLP. 14.28.7 ASU 2016-09, Improvements to Employee Share-Based Payment Accounting On March 30, 2016, the FASB issued ASU 2016-09, Improvements to Employee Share-Based Payment Accounting intended to simplify the accounting for share-based payment awards issued to employees. Executive summary 2 IFRS Viewpoint … period total cash. Restricted cash refers to cash that is held by a company for specific reasons and not available for immediate business use. The new standard takes effect in 2018 for public entities and is available here. Depending on when cash is expected to be used, restricted cash can be classified as a current (short-term) or non-current (long-term) asset. Restricted cash is commonly found on the balance sheet with a description of why the cash is restricted in the accompanying notes to the financial statements. The amendments apply to all entities with restricted cash or restricted cash equivalents and are required to present a statemen t of cash flows under Topic 230, including not-for-profit (NFP) entities. presentation of changes in restricted cash and restricted cash equivalents in the statement of cash flows.