Single Calculation Tree for Change in Cash Flows

Rule function

This rule identifies when a single calculation tree has not been used to represent the increase or decrease in cash for the period. The amount representing the increase or decrease in cash for the period should be the root node of the calculation tree for the cash flow statement. No other element comprising the change in cash for the period should also appear as a root node in the calculation tree for the cash flow statement. This rule works in conjunction with rule DQC_0048. This rule will only run if one of the following elements is also included in the list of root nodes in the calculation tree:

1. CashAndCashEquivalentsPeriodIncreaseDecrease
2. CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalentsPeriodIncreaseDecreaseIncludingExchangeRateEffect
3. CashAndCashEquivalentsPeriodIncreaseDecreaseExcludingExchangeRateEffect
4. CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalentsPeriodIncreaseDecreaseExcludingExchangeRateEffect
5. CashPeriodIncreaseDecrease
6. CashPeriodIncreaseDecreaseExcludingExchangeRateEffect

Checking against this list of elements is included in the rule to reduce duplicative errors. If one of these items is not included as the ultimate parent (root) of the calculation tree, then rule DQC_0048 will already have produced an error message.

In addition, when determining which items represent root nodes, any extension elements and the element NoncashOrPartNoncashAcquisitionNetNonmonetaryAssetsAcquiredLiabilitiesAssumed ¹ should be excluded from the list.

Problem solved by the rule

This rule identifies where an incomplete calculation has been provided for the change in cash for the period. The presence of multiple parent elements means that the cash flow calculation is incomplete. There should not be more than one root element in the calculation that could be included in the increase or decrease in cash for the period. The following figure shows where a filer has used multiple root elements (shown as clear circles) representing the change in cash and the adjustment for non cash items.

Figure: Example of two Parent (root) Elements

The increase decrease in cash during the period should be the only parent or root element in the calculation for the cash flow statement.

The rule identifies a cash flow presentation tree (extended link role) role as follows:

1. The link role definition includes the string “- Statement” and
2. The presentation link role uri excludes the case insensitive string “parenthetical” and
3. The extended link role for the presentation tree contains the abstract element StatementOfCashFlowsAbstract and
4. The presentation extended link role uri contains the case insensitive string “cashflow”. I.e. “http://abc.com/role/StatementOfCashFlows”

The rule assumes the same link role is used for the presentation and calculation trees.

Example rule message

The following elements AdjustmentsToReconcileNetIncomeLossToCashProvidedByUsedInOperatingActivities, CashAndCashEquivalentsPeriodIncreaseDecrease are parent (root) elements defined in the calculation relationship for the cash flow statement using the group http://Inbit/20160930/role/idr_StatementsOfCashFlows.

The cash flow statement should only have one calculation parent for durational concepts representing the increase or decrease in cash during the period. The element should be moved to be represented as a calculation child to the movement in cash for the period.

If the company has adopted ASU-2016-18 then the root element used to represent the aggregate change in cash should be the element CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalentsPeriodIncreaseDecreaseIncludingExchangeRateEffect. If the company specifically excludes the exchange rate effect from the total then the element CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalentsPeriodIncreaseDecreaseExcludingExchangeRateEffect should be used.

Rule version : 5.0

For Developers

The Global Rule Logic document contains general guidelines for implementation of rules.

The rule message template contains text and parametric reference to arguments of the rule operation, using the syntax ${parameter} to indicate that insertion of a parameter’s value is to occur.

Message template

The following elements ${elementNames} are parent (root) elements defined in the calculation relationship for the cash flow statement using the group ${networkrole}.

The cash flow statement should only have one calculation parent for durational concepts representing the increase or decrease in cash during the period. The element should be moved to be represented as a calculation child to the movement in cash for the period.

Rule version: ${ruleVersion}

Rule element ID index

The rule element id is used to identify unique elements or combinations of elements tested in the rule.

1 This element is often shown as an additional calculation root in the cashflow statement that is unrelated to the change in cash. (return)