Cash flow from investing activities

Explanation

Investing activities are the acquisition and disposal of non-current assets and other investments not included in cash equivalents. The separate disclosure of cash flows arising from investing activities is
important because the cash flows represent the extent to which expenditures have been made for resources intended to generate future income and cash flows.

The following examples of cash flows arising from investing activities:

  • Cash payments to acquire property, plant and equipment, intangibles and other non-current assets, including those recapitalized capitalized development costs and self-constructed property, plant and equipment.
  • Cash receipts from sales of property, plant and equipment, intangibles and other non-current assets.
  • Cash payments to acquire shares or debentures of other enterprises.
  • Cash receipts from sales of shares or debentures of other enterprises.
  • Cash advances and loans made to other parties.
  • Cash receipts from the repayment of advances and loans made to other parties.

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