In November 2016, the Financial Accounting Standards Board (FASB) issued ASU 2016-18, Statement of Cash Flows, Restricted Cash (Topic 842 in the Accounting Standards Codification).

ASU 2016-18 requires amounts described as restricted cash to be included when reconciling the beginning-of-period and end-of-period total amounts shown on the Statement of Cash Flows. Prior to this issuance, GAAP provided no clear guidance.

Effective Date

The standard is effective for private companies for fiscal years beginning after December 15, 2018 and interim periods beginning the following year.

Early adoption is permitted.



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