Nice try! Investment earnings are considered part of investing activities on the statement of cash flows regardless of whether they are designed to fund capital or related acquisitions.
GASB 9 does not establish guidance on classifying an agency’s operating statement. Therefore, an agency can classify cash transactions differently between the operating statement and statement of cash flows. If an agency decides to do this, the related cash flows must be shown as a deduction from operating income in the reconciliation section of the cash flow statement.
See Cash Flows From Investing Activities for further review.
