About this guide

Publication date: 30 Nov 2020

PwC is pleased to offer our Financial statement presentation guide. This guide serves as a compendium of many of today’s presentation and disclosure requirements included in US GAAP, including relevant references to and excerpts from the FASB’s Accounting Standards Codification (the Codification). It also provides our insights and perspectives, interpretative and application guidance, illustrative examples, and discussion on emerging practice issues.

This guide also discusses the requirements in S-X, Article 5, for commercial and industrial companies. In most cases, the content does not include the requirements of other Articles of Regulation S-X or other industry-specific guidance. However, some chapters address topics relevant to reporting entities in other industries, such as investments and derivatives.

Appropriate financial statement presentation and disclosure is key to achieving the objectives of financial reporting, including providing decision-useful information to investors, lenders, creditors, and other stakeholders. This guide has been prepared to support practitioners in the preparation of their financial statements. It should be used in combination with a thorough analysis of the relevant facts and circumstances, review of the authoritative accounting literature, and appropriate professional and technical advice.

The guidance in this guide is applicable to reporting entities that are going concerns and addresses financial statement presentation and disclosure related to the core financial statements. As a result, the following areas are not addressed in this guide:

  • Management Discussion and Analysis (MD&A)

  • Regulation S-K reporting

PwC's Bankruptcies and liquidations guide addresses the presentation and disclosure requirements applicable to entities reporting on a liquidation basis.

References to US GAAP

Definitions, full paragraphs, and excerpts from the FASB's Accounting Standards Codification are clearly labelled. In some instances, guidance was cited with minor editorial modification to flow in the context of the PwC Guide. The remaining text is PwC's original content.

References to other PwC guidance

This guide provides general and specific references to chapters in other PwC guides to assist users in finding other relevant information. References to other guides are indicated by the applicable guide abbreviation followed by the specific section number. The other PwC guides referred to in this guide, including their abbreviations, are:

•   Bankruptcies and liquidations (BLG)

•   Business combinations and noncontrolling interests (BCG)

•   Carve-out financial statements (CO)

•   Consolidation guide (CG)

•   Derivative and hedging (DH)

•   Fair value measurements, global edition (FV)

•   Financing transactions (FG)

•   Income taxes (TX)

•   Leases (LG)

•   Loans and investments (LI)

•   Not-for-profit entities (NP)

•   Property, plant, equipment and other assets (PPE)

•   Revenue from contracts with customers (RR)

•   Stock-based compensation (SC)

•   Transfers and servicing of financial assets (TS)

•   Utilities and power companies (UP)

Summary of significant changes

Included below is a summary of the noteworthy revisions to the Financial statement presentation guide since it was last updated in October 2019.

Revisions made in November 2020

FSP 6, Statement of cash flows

  • The order of certain sections within Chapter 6 was rearranged, while certain sections were also combined.

  • FSP 6.5.1 and FSP were added to include discussion on the definition of cash and the treatment of credit card and debit card payments in transit, respectively.

  • FSP 6.9.10 was updated to expand on the classification of cash flows in a troubled debt restructuring. 

  • Discussion of the cash flow presentation of lease-related accounts previously included in FSP 6.9.18 was moved to LG 9.2.3 and LG 9.3.3.

  • FSP 6.9.21 was updated to discuss the cash flow treatment of working capital adjustments from business combinations and in carve-out financial statements.

FSP 19, Derivatives and Hedging

  • Various updates were made to reflect the issuance of ASU 2019-04, Codification Improvements to Topic 326, Financial Instruments—Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments.

Revisions made in August 2020

FSP 3, Income statement

  • FSP 3.10 was updated to expand on accounting for government assistance provided to business entities.

  • Revenue presentation and disclosure content previously included in FSP 3 was moved to FSP 33.

FSP 17, Business combinations

FSP was updated to reflect the May 2020 amendments to Regulation S-X, Article 11 pro forma disclosure requirements applicable to acquisitions and dispositions of businesses.

  • FSP 17.6.5 was added to include an illustrative example of “blackline” financial statements.

FSP 33, Revenue and contract costs

  • FSP 33 was added to include discussion of presentation and disclosures for revenue and contract costs (previously in RR 12 and FSP 3).

Revisions made in June 2020

FSP 16, Income taxes

FSP 26, Related parties

  • FSP 26 was updated to include insight on the impact of the ASC 326 cumulative expected credit loss model on related party loans.

FSP 31, Parent company financial statements


This publication has been prepared for general informational purposes, and does not constitute professional advice on facts and circumstances specific to any person or entity. You should not act upon the information contained in this publication without obtaining specific professional advice. No representation or warranty (express or implied) is given as to the accuracy or completeness of the information contained in this publication. The information contained in this publication was not intended or written to be used, and cannot be used, for purposes of avoiding penalties or sanctions imposed by any government or other regulatory body. PricewaterhouseCoopers LLP, its members, employees, and agents shall not be responsible for any loss sustained by any person or entity that relies on the information contained in this publication. Certain aspects of this publication may be superseded as new guidance or interpretations emerge. Financial statement preparers and other users of this publication are therefore cautioned to stay abreast of and carefully evaluate subsequent authoritative and interpretative guidance.

The FASB Accounting Standards Codification® and the FASB Concepts Statements are copyrighted by the Financial Accounting Foundation (FAF), 401 Merritt 7, PO Box 5116, Norwalk, Connecticut, 06856-5116, U.S.A., and are reproduced with permission. Complete copies of the documents are available from the FAF.

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