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    paidiam's Avatar
    paidiam Posts: 1, Reputation: 1
    New Member
     
    #1

    Mar 2, 2009, 06:01 PM
    Treatment in cash flow statement
    How to treat cash received on sale of fixed asset in the cash flow statement?
    ROLCAM's Avatar
    ROLCAM Posts: 1,420, Reputation: 23
    Ultra Member
     
    #2

    Mar 2, 2009, 07:19 PM

    This depends very much on your future intentions.
    Please remember:-

    This is a one time item.
    It is NOT repetitive.
    The best way is to ear mark it for the
    Replacement of the asset.

    A mistake is made when because of it
    You get anxious in paying other bills.
    Once the money is spent , special procvision
    Will have to be made to replace the asset.
    hamzashakaa's Avatar
    hamzashakaa Posts: 161, Reputation: 8
    Junior Member
     
    #3

    Mar 3, 2009, 12:59 AM

    Cash received from sale of fixed assets should be reported as cash inflows from investing activities "proceeds from sale of fixed assets"

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