How Do We Disclose Noncash Transactions?
The Comptroller's Reporting Requirements for Annual Financial Reports of State Agencies requires agencies to disclose noncash transaction information with the statement of cash flows. It can be in either a narrative or tabular format and describe the cash and noncash aspects of transactions involving similar items.
For example, an agency with only one noncash transaction may simply describe the transaction in a sentence or two (narrative format). However, an agency with several noncash transactions may decide to present the information in a table. Under no circumstances should this disclosure be separated from the statement of cash flows or presented in the notes to the financial statements.