Noncash Activities
GASB 9 requires information about activities that affect either assets or liabilities, but do not result in cash receipts or payments in the financial reporting period be disclosed. Disclosure of this information is necessary if a transaction meets all of these characteristics:
The transaction is noncash
Some transactions are part cash and part noncash. Only the cash portion is reported in the statement of cash flows. The noncash portion must be evaluated further.
The transaction affects assets and/or liabilities
Changes in the balances of noncash assets and liabilities should be reviewed. If balances in these assets or liabilities change due to transactions that are not considered cash transactions, the transactions must be considered noncash.
The transaction is an investing, capital or noncapital financing activity
A noncash transaction should only be disclosed when the transaction, if it had been a cash transaction, would have been categorized as a capital and related financing, investing or noncapital related financing activity.
Only a transaction that meets all three of these criteria can be considered a noncash transaction and must be disclosed in the agency's annual financial statement.