ACC560 week 9 discussion

Read the article titled, “Key-Person Insurance: a Cash-Flow Puzzle,” located in Week 9 of the online course shell. You may also view the article at http://www3.cfo.com/article/2012/4/cash-flow_free-cash-flow-mulford-georgia-tech-key-person-life-insurance-premium-classification?currpage=2. Next, evaluate the logic of reflecting key person life insurance in the operating activities of the cash flow statement and determine whether or not this presentation is misleading to users of the financial statements.

Currently, Financial Accounting Standards Board (FASB) has not provided guidance on the appropriate section for reflecting key person life insurance. Imagine that you are a member of FASB and provide guidance for key person insurance in the cash flow statement. Provide a rationale for your response.