Investing activities
Investing cash flows generally include cash for acquiring and disposing of long-term assets and investments outside cash equivalents. The investing section helps users see cash spent on resources intended to generate future returns and cash received when those resources are sold. Classify the cash payment or receipt itself, rather than the accounting gain or loss on an asset disposal. Purchasing equipment on credit creates no cash outflow until a payment is made.
Worked example
Cash paid for machinery is an investing outflow.
Common mistake
Under ACCA's IFRS 18 FA approach, interest received is investing; non-cash acquisitions are not cash flows.
Where it appears in your exams
| Qualification | Exam | Relationship | Period |
|---|---|---|---|
| ACCA | FA | Direct | September 2026–June 2027 |
| ACCA | FR | Direct | Official assessment-window verification pending |
| ACCA | K1 | Direct | July 2027–August 2028 |
| CIMA | BA3 | Direct | Official assessment-window verification pending |
| CIMA | F1 | Direct | Official assessment-window verification pending |
| FIA | FFA | Direct | September 2026–June 2027 |
