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متابعة

Why Gain on sale of fixed assets is subtracted from Cash generated from Operating Cash flow?

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تم إضافة السؤال من قبل Sultan Qureshi , Manager Internal Audit , Eastern Garments (Pvt) Limited
تاريخ النشر: 2014/01/04
Raza ur Rehman Syed
من قبل Raza ur Rehman Syed , Finance Team Lead , Tajawal General Trading LLC

Gain on sale of fixed asset does not point to the exact amount of cash that company receives as it is calculated on accrual basis (including setting off dep..which itself a non cash exp). therfore to negate the effect in cash flow statement we subtract the gain on sale of asset and instead add the actual amount that the company receives under investing activities.

Mrinal Deb
من قبل Mrinal Deb , Manager - Finance and Accounts , Comfort Diagnostic & Nursing Home

This is not a regular transactions and not any effect on operating activities of daily business. Cash from operating activities will only include the types of transactions which is related to daily business operation.

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