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Instead of using these items, the filer should use the gross cash flow amount when available

  • CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents
  • CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalentsIncludingDisposalGroupAndDiscontinuedOperations

DQC rule DQC_0057 identifies when at least one of the following elements is not used in the cash flow statement to represent the opening and closing balances for each period reported:

The US GAAP taxonomy provides for a number of net items in the cash flow statement such as PaymentsForProceedsFromInvestments, which mature in greater than 90 days. Under US GAAP, these items should generally not be used, as cash flows should be reported gross if the maturity is longer than 90 days. Where the amount is a gross proceed and a gross payment in consecutive years, two separate elements should be used for the values. A single net element should not be used in these cases. When a filer splits a single line item into two components, the values will stay the same. It is not required that the filer report a value of zero for one line item. For example, Net Proceeds from issuance of long term debt has a value of 3,000 in period one and a value of -2,000 in period two. This is split into Gross Proceeds with a value of 3,000 in period one and Gross Repayments of Debt with a value of 2,000 in period two. There is no requirement to enter Gross Repayments of Debt with a value of 0 in period one and to enter Gross Proceeds with a value 0 in period two.

Movement Between Classes of Cash Flow Activity

Elements defined in the cash flow statement of the US GAAP taxonomy, are specifically tied to a given activity such as investing, financing or operating. Filers should not move these elements from one activity classification in the cash flow to another section of the cash flow statement. In general, the taxonomy defines additional industry-specific elements that in one industry may be considered investing, but in another industry are classified as operating.

Rules

DQC rule DQC_0045 identifies where operating items are used as investing or financing items by identifying where these elements have been reclassified as investing or financing activities in the cash flow statement. The rule also identifies investing items reclassified as financing items and vice versa.

Proceeds From Issuance of Equity

The element ProceedsFromIssuanceOfCommonStock is a financing cash flow element. As such, it represents the cash inflow from issuing equity. Many companies, when reporting this value however, report the value net of the issuance costs paid to third parties. Because companies report the value net of costs, the value can be negative when the proceeds are received in one period and the costs are paid in a later period. In the event of this occurrence, the negative amount should use the element PaymentsOfStockIssuanceCosts, recorded with a positive value.

If in one period the value is positive, representing the receipt of financing proceeds, and in an adjacent year it is negative, representing the issuance costs, then separate elements should be used to report the positive and negative payday loans in Trenton values.

In the following case, the company reported net proceeds and separately reported the issuance costs as a parenthetical amount. In these cases, the company should use the US GAAP Taxonomy net element if one exists or create an extension element to report the net proceeds of 98,872 and 175,989.

When reporting distributions from equity method investments, any distributions reported as operating cash flows should use the element EquityMethodInvestmentDividendsOrDistributions. Any distributions represented as an investment activity, because the cash flow distribution represents a return of capital, as opposed to a distribution of a dividend, should use the element ProceedsFromEquityMethodInvestmentDividendsOrDistributionsReturnOfCapital .

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