Disclosure of Non-cash Activities
Under IAS 7, non-cash investing and financing activities are disclosed in footnotes to the financial statements. Under US General Accepted Accounting Principles (GAAP), non-cash activities may be disclosed in a footnote or within the cash flow statement itself. Non-cash financing activities may include
- Leasing to purchase an asset
- Converting debt to equity
- Exchanging non-cash assets or liabilities for other non-cash assets or liabilities
- Issuing shares in exchange for assets
Read more about this topic: Cash Flow Statement
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“I am admonished in many ways that time is pushing me inexorably along. I am approaching the threshold of age; in 1977 I shall be 142. This is no time to be flitting about the earth. I must cease from the activities proper to youth and begin to take on the dignities and gravities and inertia proper to that season of honorable senility which is on its way.”
—Mark Twain [Samuel Langhorne Clemens] (1835–1910)