Examples of Noncash Transactions
According to GASB 9, paragraph 37, the following are examples of Noncash Investing, Capital and Related Financing Activities:
- Acquiring property, plant or equipment by assuming directly related liabilities, such as a mortgage or loan.
- The net unrealized increase or decrease in fair market value of investments.
- Obtaining an asset by entering into a capital lease.
- Acquiring property by exchanging another piece of property.
- Retiring debt by issuing additional debt.
- Retiring debt by giving noncash assets (for example, land) to a debtor.
Remember although some transactions are part cash and part noncash, only the cash portion is reported in the statement of cash flows and the non-cash portion in the non-cash transaction section supplemental to the statement of cash flows.