Start networking and exchanging professional insights

Register now or log in to join your professional community.

Follow

How are significant noncash transactions reported in the statement of cash flows?

user-image
Question added by Alelie Macaumbang Andi , Senior Accountant , RGCK Association Assystem Radicon in Association with Kentz Engineering International
Date Posted: 2014/09/29
Mohammad Shamim Ahmad
by Mohammad Shamim Ahmad , Senior Supervisor-Internal Control & Compliance , WOQOD - Qatar Fuel

Companies occasionally engage in non-cash transactions. Examples include asset exchanges, acquisitions made in exchange for stock of the parent company, or the exchange of convertible bonds into shares.

Since such transactions do not involve cash, they are not reported on the face of the statement of cash flows. However, significant non-cash transactions must be disclosed in the financial statement notes or a supplement to the cash flow statement.

More Questions Like This

Do you need help in adding the right keywords to your CV? Let our CV writing experts help you.