How Non-Cash Investing and Financing Transactions are Treated on the Statement of Cash Flows
Companies occasionally engage in non-cash transactions. Examples include asset exchanges, acquisitions made in exchange for stock of the parent company, or the exchange of convertible bonds into shares.
Since such transactions do not involve cash, they are not reported on the face of the statement of cash flows. However, significant non-cash transactions must be disclosed in the financial statement notes or a supplement to the cash flow statement.
For more information, see all articles on: Accounting, Financial Statement Analysis See also:
The Intelligent Investor: The Classic Text on Value Investing
Financial Statement Analysis: A Practitioner's Guide, 3rd Edition
Managing Investment Portfolios: A Dynamic Process (CFA Institute Investment Series)