SEC identifies errors in cash flow statement data
Last week the US Securities and Exchange Commission (SEC) announced findings regarding incorrect elements in certain cash flow statement presentations. Following an evaluation by SEC staff, discrepancies were discovered in three presentation abstracts: Net Cash Provided by or Used in Operating Activities, Financing Activities, and Investing Activities.
These errors, found in some Forms 10-Q and Forms 10-K filed in 2023, highlight the importance of proper data element presentation structure. Notably, some filers inaccurately included elements that do not belong under the respective abstracts as outlined in the US GAAP Taxonomy.
The SEC emphasises the significance of accurate presentation to facilitate data organisation and analysis. Filers are urged to meticulously review the parent and descendant relationships in their cash flow statement presentations to ensure compliance and data integrity.
For further details, refer to the SEC announcement here.
