Non-cash transaction
A non-cash transaction changes assets, liabilities or equity without a cash or cash-equivalent movement. Such transactions are excluded from the cash-flow statement’s cash flows and disclosed elsewhere when required. An entity issuing 5,000 of shares directly for equipment records the asset and equity, but neither a cash inflow nor a cash outflow occurred.
Worked example
Equipment acquired by issuing shares is a non-cash investing and financing transaction.
Common mistake
Showing the full value of the equipment as cash paid when no cash was transferred.
Where it appears in your exams
| Qualification | Exam | Relationship | Period |
|---|---|---|---|
| ACCA | F2 | Supporting | July 2027–August 2028 |
| ACCA | F3 | Supporting | July 2027–August 2028 |
| ACCA | FA | Direct | September 2026–June 2027 |
| ACCA | FR | Direct | Official assessment-window verification pending |
| ACCA | K1 | Direct | July 2027–August 2028 |
| FIA | FFA | Direct | September 2026–June 2027 |
Related terms
Also called: non-cash movement