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Cash flows from investing activities

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FA – FIA FFA › Cash flows from investing activities

  • This topic has 3 replies, 2 voices, and was last updated 5 years ago by John Moffat.
Viewing 4 posts - 1 through 4 (of 4 total)
  • Author
    Posts
  • October 16, 2019 at 3:19 pm #549761
    zhao0702
    Member
    • Topics: 31
    • Replies: 45
    • ☆☆

    Hi sir, this is a question about cash flow statement

    In the example 1 in the lecture, under the heading of ‘Cash flows from investing activities’, we add sale and subtract purchase of non-current assets, but what if we receive or pay on credit? Is it because it didn’t say in the question that non-current assets were sold or bought ‘on credit’, we then treated them as receipt or payment of cash by default?

    Thank you so much!!!

    October 16, 2019 at 4:43 pm #549787
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54700
    • ☆☆☆☆☆

    As per the accounting standard, we show the total amount of the purchase (or sale) regardless as to whether or not it was on credit.

    (Obviously it may be that the whole purchase price had not been paid during the period and that therefore some or all of the amount remains as a payable. However we still show the whole amount under investing activities, and any payable is dealt with in the movement on payables when calculating the cash flow from operating activities).

    October 16, 2019 at 5:39 pm #549792
    zhao0702
    Member
    • Topics: 31
    • Replies: 45
    • ☆☆

    Hi sir, I see. Thank you so much!

    October 17, 2019 at 7:54 am #549838
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54700
    • ☆☆☆☆☆

    You are welcome 🙂

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    Posts
Viewing 4 posts - 1 through 4 (of 4 total)
  • The topic ‘Cash flows from investing activities’ is closed to new replies.

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