Non-for-profit financial reporting review | Accounting 499 | Strayer University–Alexandria Campus
The organization’s statement of cash flows typically follows the Generally Accepted Accounting Principles (GAAP) format. This includes sections for operating, investing and financing activities. A unique area of emphasis that differs from GAAP accounting is the focus on non-cash items such as depreciation, amortization and stock-based compensation. These are added back to net income when calculating cash flows from operations to provide a more accurate picture of the company’s liquidity position. Additionally, some companies may also include special items in their statements of cash flows such as asset sales or extraordinary gains/losses which would not be present in a standard GAAP format.