Editing Openai/683dc86b-01f0-800f-aaec-51b6e46877e8 (section)

===== Where “restricted cash” normally sits in a statement of cash flows =====

| Accounting framework | Normal presentation                                                                                                                                                                                                                                            | Why                                                                                                                                                                                   | Typical line-item placement                                                                                                                      |
| -------------------- | ------------------------------------------------------------------------------------------------------------------------ | ------------------------------------------------------------------------------------------------------------------------ | ------------------------------------------------------------------------------------------------------------------------ |
| IFRS (IAS 7)         | Restricted amounts are excluded from “cash & cash equivalents”. Movements are shown either (a) in investing or financing sections (if the restriction is lifted or new cash is set aside) or (b) only in the reconciliation of opening-to-closing cash totals. | IAS 7 defines cash & cash equivalents as funds “available for use”; restricted balances are, by definition, not freely available.                                                     | Separate line in investing / financing or a non-cash “transfer between cash categories” disclosed outside the three activity sections. 
ifrs.org |
| US GAAP (ASC 230)    | The statement must reconcile the change in the total of cash, cash equivalents and restricted cash, but transfers between those buckets are not an operating, investing or financing cash-flow.                                                                | ASC 230-10-45-4/-5 treat the shift as a re-label of the same dollars, not a source or use of cash, so it should be shown separately from the three activity blocks. 
EY
PwC Viewpoint |                                                                                                                                                  |