What it is
The statement of cash flows explains the change in cash, cash equivalents and restricted cash together. When restricted cash sits in separate balance sheet captions, a reconciliation ties those captions to the total in the statement. This worksheet does that and supports the disclosure of restricted cash by reason.
Enter the captions at the beginning and end of the period, then the beginning total and net change from the statement of cash flows. The Detail tab lists restricted accounts with a reason and a caption, and ties the totals back to the balance sheet.
When to use it
- When the entity holds escrow, collateral, donor-restricted or other restricted cash.
- When preparing the statement of cash flows and the supporting note.
- During the audit, to tie the statement to the balance sheet.
What’s inside
- Reconciliation of balance sheet captions to the statement of cash flows total
- Beginning and ending ties with OK or Check cells
- Detail of 15 restricted accounts by reason and by current or noncurrent caption
- Tie of the detail to each balance sheet caption
- Restricted cash by reason table for the note
Standard cited
This template follows ASC 230. It is written in our own words, except for phrases the standard requires the document to contain, with [bracketed placeholders] for client details, amounts in USD and dates as MM/DD/YYYY. Check it against the current standard and your firm’s methodology before use.
Questions
Why include restricted cash in the statement of cash flows?
The statement explains the change in the total of cash, cash equivalents and restricted cash. Transfers among those components are not cash flows, so they do not appear as activities.
When is a reconciliation required?
When restricted cash appears in more than one balance sheet caption or separately from cash and cash equivalents, present a reconciliation of the captions to the total in the statement, on its face or in the notes.
What goes in the narrative?
The nature of the restrictions: for example escrow under a loan agreement, customer deposits held in trust or donor-imposed limits. The by-reason table supports it.
Related templates
- Cash Flow Statement Template, Indirect Method (ASC 230)
- Proof of Cash Template (Four-Column)
- Classified Balance Sheet Template (US GAAP)
- Bank Reconciliation Template (Excel)
Last updated 11/05/2026. All free templates.