Financial Accounting Standards Board (FASB)

The FASB Accounting Standards Codification is the source of authoritative
generally accepted accounting principles (GAAP) recognized by the FASB to be
applied by nongovernmental entities.

They provide updates from time to time about different topics.

An example: Archer Daniels Midland

I was reviewing this company and how the free cash flow turned negative in 2017.

I did not liked it, and I did a comment in twitter about this fact on a person that published some fundamental data.

I received an answer. And it was that a change in the US GAAP accounting classification made $ADM to reclassify the early collection of revenue that $ADM receives in advance,

The note that follows:

So this change in 2016 is impacting so many companies and I was thinking that it was a deterioration of the business itself. 🙁

Statement of Cash Flow Topic 230

This Statement of Cash Flows (Topic 230), contains all the data related to the different classifications that need to be done. It’s a large document for accountants.




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