The general approach is to disclose a schedule of non-cash investing and financing activities at the bottom of the statement of cash flows. They can, however, also be included as a separate schedule or in the notes to the financial statements.
In this presentation, we will take a look at the statement of cash flows non cash items. First question, why would we be looking at non cash items when considering a statement of cash flows?
In accounting, non-cash items appear on financial statements but do not impact cash flow. Examples of non-cash items include depreciation, amortization, and stock-based compensation.