P3: the cash flow statement by ASC 230 (defect 1, D-35, D-42)

Direct method with the operating reconciliation and noncash schedules; it
foots by construction (Lean and Kani). Every non-cash account belongs to
one section; reversals net; a member or lender paying for the company is
cash borrowed and spent (D-42, constructive receipt and disbursement);
property a member contributes stays noncash. The bookspec seed: one loader
checks every example.

Co-Authored-By: Claude Opus 5.5 <noreply@anthropic.com>
Claude-Session: https://claude.ai/code/session_01T3gXMVt7XJPi6ens1or9Dj

bookspec/examples/1099-worksheet-through-as-of.toml

@@ -6,13 +6,13 @@
 # rules.md B-19, B-33; regression test `the_1099_worksheet_stops_at_as_of`
 # (ledger-package tests/package.rs).
 #
-# Setup beyond the accounts: `cash_accounts` are the accounts payments
-# are made from; each `[[setup.payees]]` is a payee marked for a form;
-# an event's `payee` tags the payment to them. Expected values:
-# vendor_1099_paid gives each marked payee's payments counted from `from`
-# through `to` (both in one calendar year). The 2026 threshold is $2,000
-# (B-19), so the payee is not yet reportable as of June 30 (1400.00) and
-# is for the year (3050.00).
+# Setup beyond the accounts (bookspec/README.md): `cash_accounts` are the
+# accounts payments are made from; each `[[setup.payees]]` is a payee
+# marked for a form; an event's `payee` tags the payment to them. Event N
+# is entry N. Expected values: vendor_1099_paid gives each marked payee's
+# payments counted from `from`, January 1, through `to`, every payee
+# listed. The 2026 threshold is $2,000 (B-19), so the payee is not yet
+# reportable as of June 30 (1400.00) and is for the year (3050.00).
 
 id = "1099-worksheet-through-as-of"
 title = "A 1099 worksheet as of a day counts the year's payments through that day"
@@ -29,7 +29,7 @@ tags = ["1099", "as-of", "calendar-year", "information-return", "period-boundary
 currency = "USD"
 fiscal_year_start = "01-01"
 basis = "cash"
-rounding = "half_away_from_zero"
+rounding = "half-away-from-zero"
 cash_accounts = ["1000"]
 
 [[setup.accounts]]
@@ -56,7 +56,7 @@ type = "expense"
 name = "Contractor A"
 form = "1099-NEC"
 
-# 0: the year before.
+# Entry 1: the year before.
 [[events]]
 date = "2025-12-31"
 description = "Contract work, December"
@@ -66,7 +66,7 @@ lines = [
   { account = "1000", side = "credit", amount = "100.00" },
 ]
 
-# 1
+# Entry 2.
 [[events]]
 date = "2026-01-02"
 description = "Owner contribution"
@@ -75,7 +75,7 @@ lines = [
   { account = "3000", side = "credit", amount = "10000.00" },
 ]
 
-# 2
+# Entry 3.
 [[events]]
 date = "2026-03-15"
 description = "Contract work, March"
@@ -85,7 +85,7 @@ lines = [
   { account = "1000", side = "credit", amount = "900.00" },
 ]
 
-# 3: by card, so reported on Form 1099-K, never counted here.
+# Entry 4: by card, so reported on Form 1099-K, never counted here.
 [[events]]
 date = "2026-06-10"
 description = "Contract work, June, by card"
@@ -95,7 +95,7 @@ lines = [
   { account = "2200", side = "credit", amount = "300.00" },
 ]
 
-# 4: made on the day itself, so counted.
+# Entry 5: made on the day itself, so counted.
 [[events]]
 date = "2026-06-30"
 description = "Contract work, June"
@@ -105,7 +105,7 @@ lines = [
   { account = "1000", side = "credit", amount = "500.00" },
 ]
 
-# 5: the day after.
+# Entry 6: the day after.
 [[events]]
 date = "2026-07-01"
 description = "Contract work, July"
@@ -115,7 +115,7 @@ lines = [
   { account = "1000", side = "credit", amount = "700.00" },
 ]
 
-# 6
+# Entry 7.
 [[events]]
 date = "2026-11-20"
 description = "Contract work, November"

bookspec/examples/as-of-package-stops-at-as-of.toml

@@ -6,10 +6,11 @@
 # `every_file_in_an_as_of_package_stops_at_as_of` and
 # `as_of_package_iif_stops_at_as_of` (ledger-package tests/package.rs).
 #
-# Expected values: trial_balance gives each account's balance, debit
-# positive and credit negative, every account listed; profit_and_loss
-# gives each revenue and expense account's activity for the period as a
-# positive amount, and net_income (revenue less expenses).
+# Expected values (bookspec/README.md): trial_balance gives each
+# account's balance as of the day, debit positive and credit negative,
+# every account listed; profit_and_loss gives each revenue and expense
+# account's activity for the period on its normal side, every one
+# listed, and net_income (revenue less expenses).
 
 id = "as-of-package-stops-at-as-of"
 title = "A report as of a day leaves out what is dated after it"
@@ -25,7 +26,7 @@ tags = ["as-of", "trial-balance", "profit-and-loss", "reversal", "period-boundar
 currency = "USD"
 fiscal_year_start = "01-01"
 basis = "accrual"
-rounding = "half_away_from_zero"
+rounding = "half-away-from-zero"
 
 [[setup.accounts]]
 code = "1000"
@@ -47,7 +48,7 @@ code = "6000"
 name = "Rent"
 type = "expense"
 
-# 0
+# Entry 1.
 [[events]]
 date = "2026-01-02"
 description = "Owner contribution"
@@ -56,7 +57,7 @@ lines = [
   { account = "3000", side = "credit", amount = "10000.00" },
 ]
 
-# 1
+# Entry 2.
 [[events]]
 date = "2026-02-01"
 description = "Sale"
@@ -65,7 +66,7 @@ lines = [
   { account = "4000", side = "credit", amount = "4000.00" },
 ]
 
-# 2: dated the day itself, so in.
+# Entry 3: dated the day itself, so in.
 [[events]]
 date = "2026-06-30"
 description = "June rent"
@@ -74,7 +75,7 @@ lines = [
   { account = "1000", side = "credit", amount = "1200.00" },
 ]
 
-# 3: the day after, so out of anything as of 2026-06-30.
+# Entry 4: the day after, so out of anything as of 2026-06-30.
 [[events]]
 date = "2026-07-01"
 description = "July rent"
@@ -83,20 +84,15 @@ lines = [
   { account = "1000", side = "credit", amount = "1200.00" },
 ]
 
-# 4: a reversal dated after the day leaves its original in.
+# Entry 5: a reversal dated after the day leaves its original in.
 [[events]]
 date = "2026-07-15"
 description = "Reversal of the February sale"
-reverses = 1
-lines = [
-  { account = "4000", side = "debit", amount = "4000.00" },
-  { account = "1000", side = "credit", amount = "4000.00" },
-]
+reverses = 2
 
 [[expect]]
 query = "trial_balance"
-from = "2026-01-01"
-to = "2026-06-30"
+as_of = "2026-06-30"
 values = { "1000" = "12800.00", "3000" = "-10000.00", "4000" = "-4000.00", "6000" = "1200.00" }
 
 [[expect]]
@@ -108,8 +104,7 @@ values = { "4000" = "4000.00", "6000" = "1200.00", net_income = "2800.00" }
 # The same books a month later: the July rent and the reversal are in.
 [[expect]]
 query = "trial_balance"
-from = "2026-01-01"
-to = "2026-07-31"
+as_of = "2026-07-31"
 values = { "1000" = "7600.00", "3000" = "-10000.00", "4000" = "0.00", "6000" = "2400.00" }
 
 [[expect]]

bookspec/examples/cash-flow.debt-to-equity.toml

@@ -0,0 +1,94 @@
+id = "cash-flow.debt-to-equity"
+title = "An expense a member paid personally, then the member's advance converted to capital"
+rule = "An expense a member pays for the company on credit to the member MUST be shown as cash borrowed from the member and spent, on its date; converting that debt to equity MUST be disclosed as a noncash financing activity, not reported as a cash flow, though both its accounts are financing."
+# CHOICE: entry 1. ASC 230 doesn't address a payment a third party makes
+# on the entity's behalf; the firm guides present it by substance as a
+# constructive receipt and disbursement (a financing inflow and an
+# operating outflow), and the owner chose that (wanderbooks D-42, revising
+# D-35's noncash presentation). Entry 2's disclosure is 50-4's own example.
+status = "CHOICE"
+sources = [
+  "ASC 230-10-45-14(b)",
+  "ASC 230-10-45-17(b)",
+  "ASC 230-10-50-3",
+  "ASC 230-10-50-4",
+  "PwC Viewpoint, Financial statement presentation 6.9.3.1 (ASC 230 does not address cash a third party receives or pays on the entity's behalf; include it as though through the entity's accounts)",
+  "Deloitte Roadmap, Statement of cash flows 7.2 (constructive receipt and disbursement)",
+  "BDO Blueprint, Statement of cash flows under ASC 230 (December 2025) 3.4",
+  "wanderbooks D-42 (owner, 2026-10-20: a member or lender paying for the company is cash borrowed and spent)",
+]
+tags = ["accrual", "book", "us", "cash-flow", "noncash", "constructive", "partnership"]
+
+[setup]
+currency = "USD"
+fiscal_year_start = "01-01"
+basis = "accrual"
+rounding = "half-even"
+cash_accounts = ["1000"]
+financing_accounts = ["2100"]
+
+[[setup.accounts]]
+code = "1000"
+name = "Cash"
+type = "asset"
+
+[[setup.accounts]]
+code = "2100"
+name = "Due to members"
+type = "liability"
+
+[[setup.accounts]]
+code = "3000"
+name = "Capital — Member A"
+type = "equity"
+
+[[setup.accounts]]
+code = "6000"
+name = "Supplies"
+type = "expense"
+
+[[setup.members]]
+name = "Member A"
+capital_account = "3000"
+
+[[events]]
+date = "2026-02-03"
+description = "Supplies, paid by Member A personally"
+lines = [
+  { account = "6000", side = "debit", amount = "500.00" },
+  { account = "2100", side = "credit", amount = "500.00" },
+]
+
+[[events]]
+date = "2026-02-10"
+description = "Member A's advance converted to capital"
+lines = [
+  { account = "2100", side = "debit", amount = "500.00" },
+  { account = "3000", side = "credit", amount = "500.00" },
+]
+
+# By hand: no company cash moved. Entry 1 is borrowed from the member
+# (financing +500.00, 45-14(b)) and spent (operating -500.00, class (d),
+# 45-17(b)) on 2026-02-03, all of it on the company's behalf; net income
+# -500.00 needs no reconciling item. Entry 2 converts debt to equity, 50-4's
+# first example: disclosed 500.00, though both its accounts are financing.
+[[expect]]
+query = "cash_flow"
+from = "2026-02-01"
+to = "2026-02-28"
+
+[expect.values]
+operating = "-500.00"
+investing = "0.00"
+financing = "500.00"
+net_change = "0.00"
+difference = "0.00"
+net_income = "-500.00"
+"operating.1" = "-500.00"
+"operating.1.on_behalf" = "-500.00"
+"operating.count" = "1"
+"financing.1" = "500.00"
+"financing.1.on_behalf" = "500.00"
+"financing.count" = "1"
+"noncash.2" = "500.00"
+"noncash.count" = "1"

bookspec/examples/cash-flow.paid-on-the-companys-behalf.toml

@@ -0,0 +1,187 @@
+id = "cash-flow.paid-on-the-companys-behalf"
+title = "A member and a lender pay for the company directly; the member is repaid"
+rule = "When a member or a lender pays a company expense or purchase directly, with no cash account moving, the statement of cash flows MUST show a financing inflow (borrowed from the member or lender, or contributed when the member's capital is credited for an expense) and the operating or investing outflow, both on that payment's date; repaying the member or lender MUST be a financing outflow; such a payment and its reversal MUST net out together."
+# CHOICE: ASC 230 does not address cash a third party pays on the entity's
+# behalf. The firm guides present it by substance as a constructive
+# receipt and disbursement (PwC 6.9.3.1; Deloitte 7.2, Example 7-2, a
+# lender paying an insurer; BDO 3.4, Example 3-5, a bank paying the
+# supplier of equipment, and a parent paying a subsidiary's expenses),
+# and the owner chose that (wanderbooks D-42). KPMG also accepts a noncash
+# presentation for equipment a lender pays for.
+status = "CHOICE"
+sources = [
+  "ASC 230-10-45-13(c)",
+  "ASC 230-10-45-14(a)",
+  "ASC 230-10-45-14(b)",
+  "ASC 230-10-45-15(b)",
+  "ASC 230-10-45-17(b)",
+  "PwC Viewpoint, Financial statement presentation 6.9.3.1 (cash a third party receives or pays on the entity's behalf is included as though through the entity's accounts)",
+  "Deloitte Roadmap, Statement of cash flows 7.2 (constructive receipt and disbursement; Example 7-2)",
+  "BDO Blueprint, Statement of cash flows under ASC 230 (December 2025) 3.4 and Example 3-5",
+  "EY Financial reporting developments, Statement of cash flows (July 2026) 4.6.2 and 5.3.1",
+  "wanderbooks D-42 (owner, 2026-10-20: a member or lender paying for the company is cash borrowed and spent)",
+]
+tags = ["accrual", "book", "us", "cash-flow", "constructive", "partnership"]
+
+[setup]
+currency = "USD"
+fiscal_year_start = "01-01"
+basis = "accrual"
+rounding = "half-even"
+cash_accounts = ["1000"]
+financing_accounts = ["2100", "2500"]
+
+[[setup.accounts]]
+code = "1000"
+name = "Cash"
+type = "asset"
+
+[[setup.accounts]]
+code = "1500"
+name = "Equipment"
+type = "asset"
+
+[[setup.accounts]]
+code = "1510"
+name = "Accumulated depreciation"
+type = "asset"
+
+[[setup.accounts]]
+code = "2100"
+name = "Due to members"
+type = "liability"
+
+[[setup.accounts]]
+code = "2500"
+name = "Bank loan"
+type = "liability"
+
+[[setup.accounts]]
+code = "3000"
+name = "Capital — Member A"
+type = "equity"
+
+[[setup.accounts]]
+code = "6000"
+name = "Supplies"
+type = "expense"
+
+[[setup.accounts]]
+code = "6100"
+name = "Depreciation"
+type = "expense"
+
+[[setup.fixed_assets]]
+cost_account = "1500"
+accumulated_account = "1510"
+expense_account = "6100"
+
+[[setup.members]]
+name = "Member A"
+capital_account = "3000"
+
+[[events]]
+date = "2026-03-02"
+description = "Member A contributes cash"
+lines = [
+  { account = "1000", side = "debit", amount = "1000.00" },
+  { account = "3000", side = "credit", amount = "1000.00" },
+]
+
+[[events]]
+date = "2026-03-05"
+description = "Supplies, paid by Member A personally (owed back)"
+lines = [
+  { account = "6000", side = "debit", amount = "120.00" },
+  { account = "2100", side = "credit", amount = "120.00" },
+]
+
+[[events]]
+date = "2026-03-09"
+description = "Equipment, paid to the seller by the bank (a loan)"
+lines = [
+  { account = "1500", side = "debit", amount = "2400.00" },
+  { account = "2500", side = "credit", amount = "2400.00" },
+]
+
+[[events]]
+date = "2026-03-12"
+description = "Supplies, paid by Member A personally (contributed)"
+lines = [
+  { account = "6000", side = "debit", amount = "45.00" },
+  { account = "3000", side = "credit", amount = "45.00" },
+]
+
+[[events]]
+date = "2026-03-15"
+description = "Supplies, paid by Member A personally (posted in error)"
+lines = [
+  { account = "6000", side = "debit", amount = "30.00" },
+  { account = "2100", side = "credit", amount = "30.00" },
+]
+
+[[events]]
+date = "2026-03-16"
+description = "Reverse entry 5"
+reverses = 5
+
+[[events]]
+date = "2026-03-20"
+description = "Reimburse Member A"
+lines = [
+  { account = "2100", side = "debit", amount = "120.00" },
+  { account = "1000", side = "credit", amount = "120.00" },
+]
+
+[[events]]
+date = "2026-03-28"
+description = "Loan payment"
+lines = [
+  { account = "2500", side = "debit", amount = "200.00" },
+  { account = "1000", side = "credit", amount = "200.00" },
+]
+
+# By hand, March. Operating: entry 2, -120.00, and entry 4, -45.00 (cash
+# paid to suppliers, 45-17(b), by the member for the company): -165.00;
+# entries 5 and 6 net out. Investing: entry 3, -2,400.00 (equipment,
+# 45-13(c), paid by the bank). Financing: entry 1 +1,000.00 and entry 4
+# +45.00 (contributions, 45-14(a)), entry 2 +120.00 and entry 3 +2,400.00
+# (borrowing, 45-14(b)), entry 7 -120.00 and entry 8 -200.00 (repayments,
+# 45-15(b)): +3,245.00. Sum -165.00 - 2,400.00 + 3,245.00 = +680.00, the
+# change in cash (1,000.00 - 120.00 - 200.00). Net income -165.00 equals
+# operating: no reconciling item. Nothing is disclosed: no part of any
+# entry went unsettled.
+[[expect]]
+query = "cash_flow"
+from = "2026-03-01"
+to = "2026-03-31"
+
+[expect.values]
+operating = "-165.00"
+investing = "-2400.00"
+financing = "3245.00"
+net_change = "680.00"
+cash_beginning = "0.00"
+cash_ending = "680.00"
+difference = "0.00"
+net_income = "-165.00"
+"operating.2" = "-120.00"
+"operating.2.on_behalf" = "-120.00"
+"operating.4" = "-45.00"
+"operating.count" = "2"
+"investing.3" = "-2400.00"
+"investing.3.on_behalf" = "-2400.00"
+"investing.count" = "1"
+"financing.1" = "1000.00"
+"financing.1.on_behalf" = "0.00"
+"financing.2" = "120.00"
+"financing.2.on_behalf" = "120.00"
+"financing.3" = "2400.00"
+"financing.3.on_behalf" = "2400.00"
+"financing.4" = "45.00"
+"financing.4.on_behalf" = "45.00"
+"financing.7" = "-120.00"
+"financing.7.on_behalf" = "0.00"
+"financing.8" = "-200.00"
+"financing.count" = "6"
+"noncash.count" = "0"

bookspec/examples/cash-flow.part-cash-purchase.toml

@@ -0,0 +1,90 @@
+id = "cash-flow.part-cash-purchase"
+title = "Equipment bought part for cash, part on the seller's note"
+rule = "Of a transaction that is part cash and part noncash, only the cash portion MUST be reported in the statement of cash flows; the rest MUST be disclosed as a noncash investing and financing activity."
+status = "AUTHORITY"
+sources = ["ASC 230-10-50-5", "ASC 230-10-50-3", "ASC 230-10-50-4", "ASC 230-10-45-13(c)", "EY Financial reporting developments, Statement of cash flows (July 2026) 5.3.1 (seller-financed purchases are noncash to the extent of the seller's financing)"]
+tags = ["accrual", "book", "us", "cash-flow", "noncash"]
+
+[setup]
+currency = "USD"
+fiscal_year_start = "01-01"
+basis = "accrual"
+rounding = "half-even"
+cash_accounts = ["1000"]
+# The note is the seller's own credit, not a lender's: it is not listed as
+# financing (a lender that paid the seller would be: the purchase would
+# then be borrowed and invested, cash-flow.paid-on-the-companys-behalf).
+
+[[setup.accounts]]
+code = "1000"
+name = "Cash"
+type = "asset"
+
+[[setup.accounts]]
+code = "1520"
+name = "Vehicles"
+type = "asset"
+
+[[setup.accounts]]
+code = "1530"
+name = "Accumulated depreciation, vehicles"
+type = "asset"
+
+[[setup.accounts]]
+code = "2500"
+name = "Note payable to the seller"
+type = "liability"
+
+[[setup.accounts]]
+code = "3000"
+name = "Capital"
+type = "equity"
+
+[[setup.accounts]]
+code = "6100"
+name = "Depreciation"
+type = "expense"
+
+[[setup.fixed_assets]]
+cost_account = "1520"
+accumulated_account = "1530"
+expense_account = "6100"
+
+[[events]]
+date = "2026-01-02"
+description = "Opening contribution"
+lines = [
+  { account = "1000", side = "debit", amount = "10000.00" },
+  { account = "3000", side = "credit", amount = "10000.00" },
+]
+
+[[events]]
+date = "2026-02-08"
+description = "Vehicle: 300 down, 700 on the seller's note"
+lines = [
+  { account = "1520", side = "debit", amount = "1000.00" },
+  { account = "1000", side = "credit", amount = "300.00" },
+  { account = "2500", side = "credit", amount = "700.00" },
+]
+
+# By hand: 300 left the bank for the vehicle (investing, 45-13(c)); the
+# 700 the seller financed moved no cash, to anyone, and is disclosed (50-4:
+# acquiring an asset by assuming a directly related liability). Cash
+# 10,000.00 to 9,700.00 in February.
+[[expect]]
+query = "cash_flow"
+from = "2026-02-01"
+to = "2026-02-28"
+
+[expect.values]
+operating = "0.00"
+investing = "-300.00"
+financing = "0.00"
+net_change = "-300.00"
+cash_beginning = "10000.00"
+cash_ending = "9700.00"
+difference = "0.00"
+"investing.2" = "-300.00"
+"investing.count" = "1"
+"noncash.2" = "700.00"
+"noncash.count" = "1"

bookspec/examples/cash-flow.reversal-of-a-reversal.toml

@@ -0,0 +1,90 @@
+id = "cash-flow.reversal-of-a-reversal"
+title = "A contribution, its reversal and the reversal's reversal"
+rule = "Reversals MUST pair along the chain from its root: an entry and its reversal both in the period drop out together, and a reversal of a reversal whose partner is already paired MUST be reported, as its root would be."
+status = "AUTHORITY"
+sources = [
+  "ASC 230-10-45-14(a)",
+  "ASC 230-10-45-24",
+  "Pacioli, Summa (1494), ch. 31 (the correcting entry)",
+]
+tags = ["accrual", "book", "us", "cash-flow", "reversal"]
+
+[setup]
+currency = "USD"
+fiscal_year_start = "01-01"
+basis = "accrual"
+rounding = "half-even"
+cash_accounts = ["1000"]
+
+[[setup.accounts]]
+code = "1000"
+name = "Cash"
+type = "asset"
+
+[[setup.accounts]]
+code = "3001"
+name = "Capital — Member B"
+type = "equity"
+
+[[setup.members]]
+name = "Member B"
+capital_account = "3001"
+
+[[events]]
+date = "2026-01-20"
+description = "Opening contribution"
+lines = [
+  { account = "1000", side = "debit", amount = "1000.00" },
+  { account = "3001", side = "credit", amount = "1000.00" },
+]
+
+[[events]]
+date = "2026-02-02"
+description = "Contribution — Member B"
+lines = [
+  { account = "1000", side = "debit", amount = "300.00" },
+  { account = "3001", side = "credit", amount = "300.00" },
+]
+
+[[events]]
+date = "2026-02-03"
+description = "Reverse entry 2"
+reverses = 2
+
+[[events]]
+date = "2026-02-04"
+description = "Reverse entry 3: the contribution stands"
+reverses = 3
+
+# By hand, February: entries 2 and 3 pair (the root and its reversal);
+# entry 4 reinstates the contribution and is reported: financing +300.00,
+# the change in cash.
+[[expect]]
+query = "cash_flow"
+from = "2026-02-01"
+to = "2026-02-28"
+
+[expect.values]
+financing = "300.00"
+net_change = "300.00"
+cash_beginning = "1000.00"
+cash_ending = "1300.00"
+difference = "0.00"
+"financing.4" = "300.00"
+"financing.count" = "1"
+"noncash.count" = "0"
+
+# From February 3 the root is before the period: entries 3 and 4 pair, and
+# nothing is reported (no cash moved net, 1,300.00 to 1,300.00).
+[[expect]]
+query = "cash_flow"
+from = "2026-02-03"
+to = "2026-02-28"
+
+[expect.values]
+financing = "0.00"
+net_change = "0.00"
+cash_beginning = "1300.00"
+cash_ending = "1300.00"
+difference = "0.00"
+"financing.count" = "0"

bookspec/examples/cash-flow.reversed-property-contribution.toml

@@ -0,0 +1,84 @@
+id = "cash-flow.reversed-property-contribution"
+title = "A property contribution reversed the same day leaves the statement of cash flows empty"
+rule = "An entry and its reversal both in the period MUST contribute nothing to any section or disclosure, and the sections MUST sum to the change in cash."
+status = "AUTHORITY"
+sources = [
+  "ASC 230-10-45-1",
+  "ASC 230-10-45-24",
+  "ASC 230-10-50-3",
+  "Pacioli, Summa (1494), ch. 31 (the correcting entry)",
+]
+tags = ["accrual", "book", "us", "cash-flow", "reversal", "regression:p3-defect-1"]
+
+[setup]
+currency = "USD"
+fiscal_year_start = "01-01"
+basis = "accrual"
+rounding = "half-even"
+cash_accounts = ["1000"]
+
+[[setup.accounts]]
+code = "1000"
+name = "Cash"
+type = "asset"
+
+[[setup.accounts]]
+code = "1500"
+name = "Equipment"
+type = "asset"
+
+[[setup.accounts]]
+code = "1510"
+name = "Accumulated depreciation"
+type = "asset"
+
+[[setup.accounts]]
+code = "6100"
+name = "Depreciation"
+type = "expense"
+
+[[setup.accounts]]
+code = "3000"
+name = "Capital"
+type = "equity"
+
+[[setup.fixed_assets]]
+cost_account = "1500"
+accumulated_account = "1510"
+expense_account = "6100"
+
+[[events]]
+date = "2026-01-10"
+description = "Property contributed"
+lines = [
+  { account = "1500", side = "debit", amount = "2340.00" },
+  { account = "3000", side = "credit", amount = "2340.00" },
+]
+
+[[events]]
+date = "2026-01-10"
+description = "Reverse entry 1"
+reverses = 1
+
+# By hand: no cash moved (sections 0.00, change in cash 0.00), and the
+# entry and its reversal cancel, so nothing is disclosed either. Before the
+# fix (wanderbooks P3, defect 1) investing showed -2,340.00 against a
+# change of 0.00: the reversal's credit to equipment fell in no section.
+[[expect]]
+query = "cash_flow"
+from = "2026-01-01"
+to = "2026-12-31"
+
+[expect.values]
+operating = "0.00"
+investing = "0.00"
+financing = "0.00"
+net_change = "0.00"
+cash_beginning = "0.00"
+cash_ending = "0.00"
+difference = "0.00"
+net_income = "0.00"
+"operating.count" = "0"
+"investing.count" = "0"
+"financing.count" = "0"
+"noncash.count" = "0"

bookspec/examples/cash-flow.two-member-llc-first-year.toml

@@ -0,0 +1,443 @@
+id = "cash-flow.two-member-llc-first-year"
+title = "A two-member LLC's first weeks: contributions, member-paid expenses, property contributed, corrections"
+rule = "The statement of cash flows MUST report cash receipts and payments, by section, with each reversal netted against its original in the period; expenses members paid personally on credit to them MUST be shown as cash borrowed from the members and spent, on each payment's date; property the members contributed MUST be disclosed as a noncash activity; the sections MUST sum to the change in cash."
+# CHOICE: the member-paid expenses. ASC 230 doesn't address a payment made
+# on the entity's behalf; the firm guides present it by substance as a
+# constructive receipt and disbursement (a financing inflow and an
+# operating outflow), and the owner chose that (D-42, revising D-35's
+# noncash presentation). The rest is the Codification's.
+status = "CHOICE"
+sources = [
+  "ASC 230-10-10-1",
+  "ASC 230-10-45-14(a)",
+  "ASC 230-10-45-14(b)",
+  "ASC 230-10-45-15(b)",
+  "ASC 230-10-45-17(b)",
+  "ASC 230-10-45-24",
+  "ASC 230-10-45-28",
+  "ASC 230-10-45-30",
+  "ASC 230-10-50-3",
+  "ASC 230-10-50-4",
+  "PwC Viewpoint, Financial statement presentation 6.9.3.1 (cash a third party receives or pays on the entity's behalf is included as though through the entity's accounts)",
+  "Deloitte Roadmap, Statement of cash flows 7.2 (constructive receipt and disbursement)",
+  "BDO Blueprint, Statement of cash flows under ASC 230 (December 2025) 3.4 (a parent paying a subsidiary's expenses)",
+  "wanderbooks D-42 (owner, 2026-10-20: a member or lender paying for the company is cash borrowed and spent)",
+]
+tags = ["accrual", "book", "us", "cash-flow", "partnership", "constructive", "regression:p3-defect-1"]
+
+# A two-member LLC's first weeks, in the shape of the books P3 defect 1
+# was found in: the same 23 entries in the same order, on the same
+# accounts and roles (two contributions in cash, expenses the members paid
+# personally through Due to Members and two reimbursements, a domain
+# expensed then corrected to a prepaid, two card charges, four devices the
+# members owned contributed, two of them first entered wrongly and
+# reversed), with every amount and date this example's own. Before the fix
+# the statement didn't foot: the reversals' credits to equipment (#13,
+# #18) belonged to no section, and the contributed devices read as
+# purchases.
+
+[setup]
+currency = "USD"
+fiscal_year_start = "01-01"
+basis = "accrual"
+rounding = "half-even"
+cash_accounts = ["1000"]
+financing_accounts = ["2100"]
+
+[[setup.accounts]]
+code = "1000"
+name = "Checking"
+type = "asset"
+
+[[setup.accounts]]
+code = "1300"
+name = "Prepaid Expenses"
+type = "asset"
+
+[[setup.accounts]]
+code = "1500"
+name = "Equipment"
+type = "asset"
+
+[[setup.accounts]]
+code = "1510"
+name = "Accumulated Depreciation"
+type = "asset"
+
+[[setup.accounts]]
+code = "2050"
+name = "Business Card"
+type = "liability"
+
+[[setup.accounts]]
+code = "2100"
+name = "Due to Members"
+type = "liability"
+
+[[setup.accounts]]
+code = "3000"
+name = "Capital — Member A"
+type = "equity"
+
+[[setup.accounts]]
+code = "3001"
+name = "Capital — Member B"
+type = "equity"
+
+[[setup.accounts]]
+code = "6000"
+name = "Organizational Costs"
+type = "expense"
+
+[[setup.accounts]]
+code = "6050"
+name = "Domain & Hosting"
+type = "expense"
+
+[[setup.accounts]]
+code = "6200"
+name = "Developer Fees"
+type = "expense"
+
+[[setup.accounts]]
+code = "6300"
+name = "Software & Subscriptions"
+type = "expense"
+
+[[setup.accounts]]
+code = "6400"
+name = "Memberships & Licenses"
+type = "expense"
+
+[[setup.accounts]]
+code = "6500"
+name = "Depreciation Expense"
+type = "expense"
+
+[[setup.fixed_assets]]
+cost_account = "1500"
+accumulated_account = "1510"
+expense_account = "6500"
+
+[[setup.members]]
+name = "Member A"
+capital_account = "3000"
+
+[[setup.members]]
+name = "Member B"
+capital_account = "3001"
+
+# Entry 1.
+[[events]]
+date = "2026-03-02"
+description = "Formation filing fee, paid by the members"
+lines = [
+  { account = "6000", side = "debit", amount = "85.00" },
+  { account = "2100", side = "credit", amount = "85.00" },
+]
+
+# Entry 2.
+[[events]]
+date = "2026-03-03"
+description = "Domain, 1 year, paid by the members"
+lines = [
+  { account = "6050", side = "debit", amount = "12.97" },
+  { account = "2100", side = "credit", amount = "12.97" },
+]
+
+# Entry 3.
+[[events]]
+date = "2026-03-05"
+description = "Developer registration, paid by the members"
+lines = [
+  { account = "6200", side = "debit", amount = "99.00" },
+  { account = "2100", side = "credit", amount = "99.00" },
+]
+
+# Entry 4.
+[[events]]
+date = "2026-03-09"
+description = "Contribution — Member A"
+lines = [
+  { account = "1000", side = "debit", amount = "1200.00" },
+  { account = "3000", side = "credit", amount = "1200.00" },
+]
+
+# Entry 5.
+[[events]]
+date = "2026-03-10"
+description = "Contribution — Member B"
+lines = [
+  { account = "1000", side = "debit", amount = "800.00" },
+  { account = "3001", side = "credit", amount = "800.00" },
+]
+
+# Entry 6.
+[[events]]
+date = "2026-03-11"
+description = "Subscription top-up, paid by the members"
+lines = [
+  { account = "6300", side = "debit", amount = "7.49" },
+  { account = "2100", side = "credit", amount = "7.49" },
+]
+
+# Entry 7.
+[[events]]
+date = "2026-03-16"
+description = "Developer membership, paid by the members"
+lines = [
+  { account = "6400", side = "debit", amount = "129.00" },
+  { account = "2100", side = "credit", amount = "129.00" },
+]
+
+# Entry 8.
+[[events]]
+date = "2026-03-23"
+description = "Reimburse members"
+lines = [
+  { account = "2100", side = "debit", amount = "333.46" },
+  { account = "1000", side = "credit", amount = "333.46" },
+]
+
+# Entry 9.
+[[events]]
+date = "2026-03-20"
+description = "Domain, 2 years, paid by the members"
+lines = [
+  { account = "6050", side = "debit", amount = "46.38" },
+  { account = "2100", side = "credit", amount = "46.38" },
+]
+
+# Entry 10.
+[[events]]
+date = "2026-03-25"
+description = "API credits on the card"
+lines = [
+  { account = "6300", side = "debit", amount = "14.20" },
+  { account = "2050", side = "credit", amount = "14.20" },
+]
+
+# Entry 11.
+[[events]]
+date = "2026-03-26"
+description = "Reimburse members"
+lines = [
+  { account = "2100", side = "debit", amount = "46.38" },
+  { account = "1000", side = "credit", amount = "46.38" },
+]
+
+# Entry 12.
+[[events]]
+date = "2026-03-27"
+description = "Laptop contributed by Member A"
+lines = [
+  { account = "1500", side = "debit", amount = "1480.00" },
+  { account = "3000", side = "credit", amount = "1480.00" },
+]
+
+# Entry 13.
+[[events]]
+date = "2026-03-27"
+description = "Reverse entry 12: contributed jointly"
+reverses = 12
+
+# Entry 14.
+[[events]]
+date = "2026-03-27"
+description = "Laptop contributed jointly"
+lines = [
+  { account = "1500", side = "debit", amount = "1480.00" },
+  { account = "3000", side = "credit", amount = "740.00" },
+  { account = "3001", side = "credit", amount = "740.00" },
+]
+
+# Entry 15.
+[[events]]
+date = "2026-03-27"
+description = "Laptop contributed jointly"
+lines = [
+  { account = "1500", side = "debit", amount = "1190.00" },
+  { account = "3000", side = "credit", amount = "595.00" },
+  { account = "3001", side = "credit", amount = "595.00" },
+]
+
+# Entry 16.
+[[events]]
+date = "2026-03-27"
+description = "Desktop contributed jointly"
+lines = [
+  { account = "1500", side = "debit", amount = "2210.00" },
+  { account = "3000", side = "credit", amount = "1105.00" },
+  { account = "3001", side = "credit", amount = "1105.00" },
+]
+
+# Entry 17.
+[[events]]
+date = "2026-03-27"
+description = "Tablet contributed jointly"
+lines = [
+  { account = "1500", side = "debit", amount = "630.00" },
+  { account = "3000", side = "credit", amount = "315.00" },
+  { account = "3001", side = "credit", amount = "315.00" },
+]
+
+# Entry 18.
+[[events]]
+date = "2026-03-27"
+description = "Reverse entry 15: the service plan is separate"
+reverses = 15
+
+# Entry 19.
+[[events]]
+date = "2026-03-27"
+description = "Laptop and its service plan contributed jointly"
+lines = [
+  { account = "1500", side = "debit", amount = "1151.00" },
+  { account = "1300", side = "debit", amount = "39.00" },
+  { account = "3000", side = "credit", amount = "595.00" },
+  { account = "3001", side = "credit", amount = "595.00" },
+]
+
+# Entry 20.
+[[events]]
+date = "2026-03-20"
+description = "Domain, 2 years, paid by the members, prepaid"
+lines = [
+  { account = "1300", side = "debit", amount = "46.38" },
+  { account = "2100", side = "credit", amount = "46.38" },
+]
+
+# Entry 21.
+[[events]]
+date = "2026-03-12"
+description = "Subscription, paid by the members"
+lines = [
+  { account = "6300", side = "debit", amount = "216.40" },
+  { account = "2100", side = "credit", amount = "216.40" },
+]
+
+# Entry 22.
+[[events]]
+date = "2026-03-20"
+description = "Reverse entry 9: prepaid, not expensed"
+reverses = 9
+
+# Entry 23.
+[[events]]
+date = "2026-03-30"
+description = "API credits on the card"
+lines = [
+  { account = "6300", side = "debit", amount = "42.75" },
+  { account = "2050", side = "credit", amount = "42.75" },
+]
+# By hand, the year to 2026-03-31 (rules.md B-14; D-42 for what the
+# members paid). Cash is 1000; 2100 (Due to Members) is financing.
+# - Operating: the members paid #1 85.00, #2 12.97, #3 99.00, #6 7.49,
+#   #21 216.40, #7 129.00 and #20 46.38 (the prepaid domain) for the
+#   company through 2100, each borrowed (financing, 45-14(b)) and spent
+#   (operating, 45-17(b)) on its date: 85.00 + 12.97 + 99.00 + 7.49 +
+#   216.40 + 129.00 + 46.38 = 596.24, so operating -596.24, all cash paid
+#   to suppliers. #9 and its reversal #22 net out (rule 6). The card's #10
+#   and #23 moved no cash and 2050 is not financing: no line.
+# - Investing 0.00: every device was property the members owned (50-4),
+#   disclosed below; #12/#13 and #15/#18 net out.
+# - Financing: #4 +1,200.00 and #5 +800.00 (contributions, 45-14(a));
+#   +596.24 borrowed from the members (the seven above); the
+#   reimbursements #8 -333.46 (#1, #2, #3, #6 and #7: 85.00 + 12.97 +
+#   99.00 + 7.49 + 129.00) and #11 -46.38 (#20), 45-15(b): 1,200.00 +
+#   800.00 + 596.24 - 333.46 - 46.38 = +2,216.40.
+# - Sum: -596.24 + 0.00 + 2,216.40 = +1,620.16, the change in cash (in
+#   1,200.00 + 800.00, out 333.46 + 46.38; 0.00 to 1,620.16); difference
+#   0.00.
+# - Reconciliation (45-28 to 45-30): net income is minus the expenses,
+#   85.00 + 12.97 + 99.00 + 7.49 + 129.00 + 46.38 - 46.38 + 14.20 + 216.40
+#   + 42.75 = 606.81, so -606.81; other noncash +39.00 (#19's service
+#   plan, contributed with the laptop); increase in 1300, 39.00 + 46.38,
+#   so -85.38; increase in 2050, 14.20 + 42.75, so +56.95. Total -606.81 +
+#   39.00 - 85.38 + 56.95 = -596.24, the operating section.
+# - Disclosed (50-3, 50-4), the property contributed: #14 1,480.00, #16
+#   2,210.00, #17 630.00, #19 1,190.00 (1,151.00 equipment and 39.00 a
+#   prepaid service plan), 5,510.00 in all; #12/#13 and #15/#18 drop out.
+[[expect]]
+query = "cash_flow"
+from = "2026-01-01"
+to = "2026-03-31"
+
+[expect.values]
+operating = "-596.24"
+investing = "0.00"
+financing = "2216.40"
+net_change = "1620.16"
+cash_beginning = "0.00"
+cash_ending = "1620.16"
+difference = "0.00"
+net_income = "-606.81"
+"operating.1" = "-85.00"
+"operating.2" = "-12.97"
+"operating.3" = "-99.00"
+"operating.6" = "-7.49"
+"operating.7" = "-129.00"
+"operating.20" = "-46.38"
+"operating.21" = "-216.40"
+"operating.count" = "7"
+"investing.count" = "0"
+"financing.1" = "85.00"
+"financing.1.on_behalf" = "85.00"
+"financing.2" = "12.97"
+"financing.3" = "99.00"
+"financing.4" = "1200.00"
+"financing.4.on_behalf" = "0.00"
+"financing.5" = "800.00"
+"financing.6" = "7.49"
+"financing.7" = "129.00"
+"financing.8" = "-333.46"
+"financing.11" = "-46.38"
+"financing.20" = "46.38"
+"financing.20.on_behalf" = "46.38"
+"financing.21" = "216.40"
+"financing.count" = "11"
+"reconciliation.other_noncash" = "39.00"
+"reconciliation.balance_change.1300" = "-85.38"
+"reconciliation.balance_change.2050" = "56.95"
+"noncash.14" = "1480.00"
+"noncash.16" = "2210.00"
+"noncash.17" = "630.00"
+"noncash.19" = "1190.00"
+"noncash.count" = "4"
+
+# The same books to 2026-03-18: #1 to #7 and #21 are dated by then (#9,
+# #20 and #22 on 03-20, the rest later). The members paid #1, #2, #3, #6,
+# #7 and #21 for the company, 85.00 + 12.97 + 99.00 + 7.49 + 129.00 +
+# 216.40 = 549.86: operating -549.86; financing #4 +1,200.00, #5 +800.00
+# and the 549.86 borrowed, +2,549.86; the change in cash 2,000.00
+# (-549.86 + 2,549.86); net income -549.86 with no reconciling item (no
+# operating balance has moved yet); nothing disclosed.
+[[expect]]
+query = "cash_flow"
+from = "2026-01-01"
+to = "2026-03-18"
+
+[expect.values]
+operating = "-549.86"
+investing = "0.00"
+financing = "2549.86"
+net_change = "2000.00"
+difference = "0.00"
+net_income = "-549.86"
+"operating.1" = "-85.00"
+"operating.2" = "-12.97"
+"operating.3" = "-99.00"
+"operating.6" = "-7.49"
+"operating.7" = "-129.00"
+"operating.21" = "-216.40"
+"operating.count" = "6"
+"financing.1" = "85.00"
+"financing.2" = "12.97"
+"financing.3" = "99.00"
+"financing.4" = "1200.00"
+"financing.5" = "800.00"
+"financing.6" = "7.49"
+"financing.7" = "129.00"
+"financing.21" = "216.40"
+"financing.count" = "8"
+"noncash.count" = "0"

bookspec/examples/iif-quickbooks-journal-file.toml

@@ -18,16 +18,15 @@
 # Setup beyond the accounts: `cash_accounts` are the bank accounts (BANK);
 # an account's QuickBooks type otherwise follows its type (asset OCASSET,
 # liability OCLIAB, equity EQUITY, revenue INC, expense EXP); an account's
-# `parent` is its parent's code. Each event is a posted entry, its id one
-# more than its index. Expected values: iif_lines gives the file's lines
-# in order, each a string of fields joined by tabs ("\t"), every line
-# ending CR LF in the file; iif_changes gives each text written
-# differently from the books, in file order (the accounts as declared:
-# by code, each after its parent; then the entries), as [what, books'
-# text, file's text], where what is "name <code>", "number" (left out of
-# ACCNUM when the file's text is empty), "top level <code>" (written
-# apart from its parent, the books' text: the parent's code) or
-# "memo <entry id>".
+# `parent` is its parent's code. Event N is entry N (bookspec/README.md).
+# Expected values: iif_lines gives the file's lines in order, each a
+# string of fields joined by tabs ("\t"), every line ending CR LF in the
+# file; iif_changes gives each text written differently from the books,
+# in file order (the accounts as declared: by code, each after its
+# parent; then the entries), as [what, books' text, file's text], where
+# what is "name <code>", "number" (left out of ACCNUM when the file's
+# text is empty), "top level <code>" (written apart from its parent, the
+# books' text: the parent's code) or "memo <entry id>".
 
 id = "iif-quickbooks-journal-file"
 appendix = "formats"
@@ -48,7 +47,7 @@ tags = ["iif", "quickbooks", "as-of", "format", "transliteration"]
 currency = "USD"
 fiscal_year_start = "01-01"
 basis = "cash"
-rounding = "half_away_from_zero"
+rounding = "half-away-from-zero"
 cash_accounts = ["1000"]
 
 [[setup.accounts]]
@@ -96,7 +95,7 @@ code = "6100"
 name = "Professional services and consulting fees"
 type = "expense"
 
-# 0: entry 1.
+# Entry 1.
 [[events]]
 date = "2026-01-02"
 description = "Owner contribution"
@@ -105,7 +104,7 @@ lines = [
   { account = "3000", side = "credit", amount = "5000.00" },
 ]
 
-# 1: entry 2. An em dash and double quotes.
+# Entry 2. An em dash and double quotes.
 [[events]]
 date = "2026-01-15"
 description = "Lunch — \"team\""
@@ -114,7 +113,7 @@ lines = [
   { account = "1000", side = "credit", amount = "42.50" },
 ]
 
-# 2: entry 3. An account named past 31 characters.
+# Entry 3. An account named past 31 characters.
 [[events]]
 date = "2026-01-20"
 description = "Consulting"
@@ -123,7 +122,7 @@ lines = [
   { account = "1000", side = "credit", amount = "300.00" },
 ]
 
-# 3: entry 4, dated the day itself: in.
+# Entry 4, dated the day itself: in.
 [[events]]
 date = "2026-02-01"
 description = "Sale"
@@ -132,7 +131,7 @@ lines = [
   { account = "4000", side = "credit", amount = "1000.00" },
 ]
 
-# 4: entry 5, the day after: out.
+# Entry 5, the day after: out.
 [[events]]
 date = "2026-02-02"
 description = "Second sale"