In Financial Accounting, a Cash Flow Statement, also known as Statement of Cash Flows (Erich A. Helfert), is a financial statement that provides details of how much a company is receiving and paying cash in an accounting period. Copy the link given below and paste it in new browser window to get more information on Investing Activities:-www.transtutors.com/homework-help/accounting/investing-activities.aspx

2. What is a cash flow statement?
In financial accounting, a cash flow statement, also known as
statement of cash flows” (Erich A. Helfert), is a financial statement
that provides details of how much a company is receiving and paying
cash in an accounting period. Cash flow statement provides
information about how changes in other financial statements i.e.
balance sheet and income statement affect cash and cash
equivalents. There are three sections of cash flows i.e. operating,
investing and financing activities.

3. Classification of cash flows
 Operating activities are those activities that are
part of the day-to-day business functioning of
selling inventory and providing services.
 Investing activities are those activities which are
associated with the purchase and sale of
equipment, intangible assets, other long-term
long-term and short-term investments in the
(bonds and loans) issued by other companies.
 Financing activities are those activities which are
related to financing i.e. obtaining or repaying
used in the business (e.g., equity and long-term

4. Cash flow from investing
activitiesCash outflows include:
 Cash Payments made to purchase fixed assets
intangibles). These payments also include
related to capitalizing R&D costs
 Cash Payments made to purchase shares,
instruments and interests in joint ventures (It
payments made for those instruments which are
or trading purposes).
 Cash advances and loans made to third parties
include advances and loans made by a financial

5. Cash inflows include:
 Cash Receipts from the sale of shares, warrants or debt
interests in joint ventures (It does not include receipts
which are held for dealing or trading purposes).
 Cash Receipts from the repayment of advances and
parties (It does not include advances and loans received
enterprise).
 Cash Receipts from the sale of fixed assets (including
 Dividend received from investments in other enterprises

6. Treatment of gain or loss on
sale of fixed asset
Sale of fixed asset is not an operating gain or loss but they are
included in the determination of the NOI and therefore its effect must
be removed from the NOI in the operating activities section. The
treatment is as follows: Any gain on sale of fixed assets which is
included in the income statement must be deducted from net
operating income and vice versa

7. Cash from investing activities:
Differences between IFRS and US
GAAP
Topic IFRS US GAAP
Classification of cash
flows:
Interest received Operating or investing Operating
Dividends received Operating or investing Operating
Taxes paid Generally operating, but a portion can be allocated to
investing or financing if it can be specifically identified
with these categories
Operating

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