Noncash Operating and Financing Activities

Noncash financing and investing activities are those that do not result in cash receipts or payments. Information about these activities should be provided separately in a supplemental disclosure. Any part of the transaction that does involve cash would be included in the statement of cash flows. Examples include a purchase of fixed assets by issuance of stock, the conversion of bonds to equity, and the exchange of one noncash asset for another noncash asset. See also operating activities and investing activities and financing activities and direct method and indirect method.