Unique Significant Noncash Financing And Investing Activities
In a separate schedule to accompany the statement of cash flows c.
Significant noncash financing and investing activities. As the name suggests non-cash investing and financing activities involve the use of financial tools other than cash to make an investment or purchase. In the statement of cash flows b. Chapter 1 Datar and Rajan The primary users of managerial accounting information and financial accounting information.
Some cash flows relating to investing or financing activities are classified as operating activities. The accounting principle that requires significant noncash financing and investing activities be reported on the statement of cash flows is the. Noncash Investing And Financing Activities.
The operating activities section of the statement of. Some examples of non-cash investing and financing activities that may become significant for the users of financial statements are given below. Issuance of stock to retire a debt.
A note below the statement of cash flows. In a footnote accompanying the balance sheet. Such transactions should be disclosed elsewhere in the financial statements in a way that provide all the relevant information about these investing and financing activities.
Noncash Investing and Financing Activities A select set of important investing and financing activities occur without generating or consuming any cash. Noncash activities are the transactions that do not result in the exchange of actual cash but affect the financial statements. Some investing and financing activities occur without generating or consuming cash.
Noncash investing and financing activities - Significant noncash transactions ex. Exchange of non-cash assets. They affect an asset or liability.