Cash Flow Continuing Operations Elements not Used

Rule function

This rule is intended to identify cases where a company’s cash flow includes discontinued operations as a summation-child to the periodic change in cash and cash equivalents (summation-parent), but the calculation tree does not include continuing operations as a summation-child. The rule identifies where any of the following conditions occur in a filing:

1. CashProvidedByUsedInInvestingActivitiesDiscontinuedOperations is not included as a calculation child of the element NetCashProvidedByUsedInInvestingActivities but both elements are included in the change in cash for the period.
2. CashProvidedByUsedInOperatingActivitiesDiscontinuedOperations is not included as a calculation child of the element NetCashProvidedByUsedInIOperatingActivities but both elements are included in the change in cash for the period.
3. CashProvidedByUsedInFinancingActivitiesDiscontinuedOperations is not included as a calculation child of the element NetCashProvidedByUsedInIFinancingActivities but both elements are included in the change in cash for the period.

Each of the above 3 criteria run as separate rules.

Because the change in cash for the period could be represented by a number of different elements depending on the filer, the rule determines a common ancestor. In the case for item 1 above, this is done by identifying the element that meets the following criteria:

• Identify the parent element of
• Identify all the ancestors of CashProvidedByUsedInInvestingActivitiesDiscontinuedOperations
• Identify the element that is the intersection of the 2 sets

If a common element is identified, then the rule determines if CashProvidedByUsedInInvestingActivitiesDiscontinuedOperations is a calculation descendant of NetCashProvidedByUsedInInvestingActivities. If it is not a descendant, then an error is produced. No error is produced if CashProvidedByUsedInInvestingActivitiesDiscontinuedOperations is a calculation descendant of NetCashProvidedByUsedInInvestingActivities or if a common parent element is not identified.

Problem solved by the rule

This rule identifies where the following elements have been used:

• NetCashProvidedByUsedInInvestingActivities,
• NetCashProvidedByUsedInIOperatingActivities
• NetCashProvidedByUsedInIFinancingActivities

Instead of the filer using the following elements :

• NetCashProvidedByUsedInInvestingActivitiesContinuingOperations
• NetCashProvidedByUsedInOperatingActivitiesContinuingOperations
• NetCashProvidedByUsedInFinancingActivitiesContinuingOperations

Example rule message

The company’s calculation relationship includes NetCashProvidedByUsedInInvestingActivities and CashProvidedByUsedInInvestingActivitiesDiscontinuedOperations in the calculation of CashAndCashEquivalentsPeriodIncreaseDecrease. But the element CashProvidedByUsedInInvestingActivitiesDiscontinuedOperations is not a direct child of NetCashProvidedByUsedInInvestingActivities. NetCashProvidedByUsedInInvestingActivities is intended to represent the total of cash provided by or used in continuing and discontinued operations. Cash flows from both discontinued operations and continuing activities cannot add into the total of CashAndCashEquivalentsPeriodIncreaseDecrease as this implies that discontinued operations is being double counted, once in continuing activities and once as discontinued operations from investing activities.

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 company’s calculation relationship includes ${ParentElement} and ${ChildElement} in the calculation of ${changeInCashElement}. But ${ChildElement} is not a direct child of ${ParentElement}. ${ParentElement} is intended to represent the total of cash provided by or used in continuing and discontinued operations. Cash flows from both discontinued operations and continuing activities cannot add into the total of ${changeInCashElement}. as this implies that discontinued operations is being double counted, once in continuing activities and once as discontinued operations.

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.