Author Topic: BRK accounting question. Apparent discrepancy on CF statement  (Read 1200 times)

TREVNI

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Hoping someone can help reconcile this for me. The acquisition of treasury stock on the CF statement is $4,850 but is listed as $5,016 on the statement of changes in SH equity. I can't seem to reconcile the two. The figure for 2018 reconciles perfectly. Where's the $166 million difference? Thanks!



Cigarbutt

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Re: BRK accounting question. Apparent discrepancy on CF statement
« Reply #1 on: May 07, 2020, 06:00:38 PM »
^I would say it's likely to be an accrual issue at the end of periods.
The change in treasury stock reported on the balance sheet and equity sections reflects the transaction dates and the cash flow reported reflects the settlement (T+2) dates. So, there may exist a temporary difference for some transactions made near period ends. In the end, it will tend to even out. i assume 2018 transactions did not occur near period ends.

TREVNI

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Re: BRK accounting question. Apparent discrepancy on CF statement
« Reply #2 on: May 08, 2020, 06:04:32 AM »
^I would say it's likely to be an accrual issue at the end of periods.
The change in treasury stock reported on the balance sheet and equity sections reflects the transaction dates and the cash flow reported reflects the settlement (T+2) dates. So, there may exist a temporary difference for some transactions made near period ends. In the end, it will tend to even out. i assume 2018 transactions did not occur near period ends.

Thank you Cigarbutt! I just learned something new about accounting. When I look at the 1Q2020 report the CF statement is higher by the same $166MM. Really appreciate it, thanks!