Profit/loss on sale of asset in cash flow statement.

[MOHAMMED ABDUL SAMAD]

Dear Experts,

I need some explanation on Cash flow statement.

When there is a profit on sale of asset. This profit is subtracted in Cash flow statement..

Similarly if Loss on sale of asset. We ADD this amount in the statement.

Kindly provide the clear picture please.

Thank you,
Abdul Samad.

 

[Triest123]

Dear Experts,

I need some explanation on Cash flow statement.

When there is a profit on sale of asset. This profit is subtracted in Cash flow statement..

Similarly if Loss on sale of asset. We ADD this amount in the statement.

Kindly provide the clear picture please.

Thank you,
Abdul Samad.

When preparing the cash flow statement, the profit or loss from the sale of fixed asset (non current asset) shall be excluded from the operating income.
We only consider the actual "CASH" receipts from the sale of the fixed asset, which is
classified as "investing activities.