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Cash Flows, Hedging to Get Accounting Rulemaker Research (1)

June 29, 2022, 5:22 PMUpdated: June 29, 2022, 8:13 PM

US accounting rulemakers on Wednesday agreed to research next steps in figuring out ways to improve both the statement of cash flows and complex guidance on hedge accounting.

The Financial Accounting Standards Board putting these two topics on its research to-do list, instead of its standard-setting agenda, means companies and accountants shouldn’t expect action any time soon, but FASB still deems these areas in need of improvement in the future.

“There’s enough misunderstanding here about what we would do,” FASB Chair Richard Jones said of a potential project to improve what companies report in their statement of cash flows. “If ...