16 | The separate disclosure of cash flows arising from investing activities is important because the cash flows represent the extent to which expenditures have been made for resources intended to generate future income and cash flows. Only expenditures that result in a recognised asset in the statement of financial position are eligible for classification as investing activities. [Refer:Basis for Conclusions paragraphs BC3–BC8 and IFRS6 Basis for Conclusions paragraphs BC23A and BC23B] Examples of cash flows arising from investing activities are: (a) | cash payments to acquire property, plant and equipment, intangibles and other long‑term assets. These payments include those relating to capitalised development costs [Refer:IAS38 paragraphs 57–67] and self‑constructed property, plant and equipment; [Refer:IAS16 paragraph22] | Purchase of intangible assets, classified as investing activities Example | MonetaryDuration, Credit | | 510000, 520000 | | Purchase of other long-term assets, classified as investing activities Example | MonetaryDuration, Credit | | 510000, 520000 | | Purchase of property, plant and equipment, classified as investing activities Example | MonetaryDuration, Credit | | 510000, 520000 |
| (b) | cash receipts from sales of property, plant and equipment, intangibles and other long‑term assets; | Proceeds from sales of intangible assets, classified as investing activities Example | MonetaryDuration, Debit | | 510000, 520000 | | Proceeds from sales of other long-term assets, classified as investing activities Example | MonetaryDuration, Debit | | 510000, 520000 | | Proceeds from sales of property, plant and equipment, classified as investing activities Example | MonetaryDuration, Debit | | 510000, 520000 |
| (c) | cash payments to acquire equity or debt instruments of other entities and interests in joint ventures (other than payments for those instruments considered to be cash equivalents or those held for dealing or trading purposes); | Other cash payments to acquire equity or debt instruments of other entities, classified as investing activities Example | MonetaryDuration, Credit | | 510000, 520000 | | Other cash payments to acquire interests in joint ventures, classified as investing activities Example | MonetaryDuration, Credit | | 510000, 520000 |
| (d) | cash receipts from sales of equity or debt instruments of other entities and interests in joint ventures (other than receipts for those instruments considered to be cash equivalents and those held for dealing or trading purposes); | Other cash receipts from sales of equity or debt instruments of other entities, classified as investing activities Example | MonetaryDuration, Debit | | 510000, 520000 | | Other cash receipts from sales of interests in joint ventures, classified as investing activities Example | MonetaryDuration, Debit | | 510000, 520000 |
| (e) | cash advances and loans made to other parties (other than advances and loans made by a financial institution [Refer:Illustrative Examples, exampleB]); | Cash advances and loans made to other parties, classified as investing activities Example | MonetaryDuration, Credit | | 510000, 520000 |
| (f) | cash receipts from the repayment of advances and loans made to other parties (other than advances and loans of a financial institution); | Cash receipts from repayment of advances and loans made to other parties, classified as investing activities Example | MonetaryDuration, Debit | | 510000, 520000 |
| (g) | cash payments for futures contracts, forward contracts, option contracts and swap contracts except when the contracts are held for dealing or trading purposes, or the payments are classified as financing activities; and | Cash payments for futures contracts, forward contracts, option contracts and swap contracts, classified as investing activities Example | MonetaryDuration, Credit | | 510000, 520000 |
| (h) | cash receipts from futures contracts, forward contracts, option contracts and swap contracts except when the contracts are held for dealing or trading purposes, or the receipts are classified as financing activities. | Cash receipts from futures contracts, forward contracts, option contracts and swap contracts, classified as investing activities Example | MonetaryDuration, Debit | | 510000, 520000 |
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When a contract is accounted for as a hedge of an identifiable position the cash flows of the contract are classified in the same manner as the cash flows of the position being hedged. | Cash advances and loans made to related parties Common practice | MonetaryDuration, Credit | | 800300 | | Cash flows from (used in) decrease (increase) in restricted cash and cash equivalents Common practice | MonetaryDuration, Debit | | 800300 | | Cash flows from (used in) decrease (increase) in short-term deposits and investments Common practice | MonetaryDuration, Debit | | 800300 | | Cash flows used in exploration and development activities Common practice | MonetaryDuration, Credit | | 800300 | | Cash receipts from repayment of advances and loans made to related parties Common practice | MonetaryDuration, Debit | | 800300 | | Dividends received from associates, classified as investing activities Common practice | MonetaryDuration, Debit | | 800300 | | Dividends received from investments accounted for using equity method, classified as investing activities Common practice | MonetaryDuration, Debit | | 800300 | | Dividends received from joint ventures, classified as investing activities Common practice | MonetaryDuration, Debit | | 800300 | | Inflows of cash from investing activities Common practice | MonetaryDuration, Debit | | 800300 | | Outflows of cash from investing activities Common practice | MonetaryDuration, Credit | | 800300 | | Payments for development project expenditure Common practice | MonetaryDuration, Credit | | 800300 | | Proceeds from disposal of exploration and evaluation assets Common practice | MonetaryDuration, Debit | | 800300 | | Proceeds from disposal of mining assets Common practice | MonetaryDuration, Debit | | 800300 | | Proceeds from disposal of non-current assets or disposal groups classified as held for sale and discontinued operations Common practice | MonetaryDuration, Debit | | 800300 | | Proceeds from disposal of oil and gas assets Common practice | MonetaryDuration, Debit | | 800300 | | Proceeds from disposals of property, plant and equipment, intangible assets other than goodwill, investment property and other non-current assets Common practice | MonetaryDuration, Debit | | 800300 | | Proceeds from sales of biological assets Common practice | MonetaryDuration, Debit | | 800300 | | Proceeds from sales of interests in associates Common practice | MonetaryDuration, Debit | | 800300 | | Proceeds from sales of investment property Common practice | MonetaryDuration, Debit | | 800300 | | Proceeds from sales of investments accounted for using equity method Common practice | MonetaryDuration, Debit | | 800300 | | Proceeds from sales of investments other than investments accounted for using equity method Common practice | MonetaryDuration, Debit | | 800300 | | Proceeds from sales or maturity of financial instruments, classified as investing activities Common practice | MonetaryDuration, Debit | | 800300 | | Purchase of biological assets Common practice | MonetaryDuration, Credit | | 800300 | | Purchase of exploration and evaluation assets Common practice | MonetaryDuration, Credit | | 800300 | | Purchase of financial instruments, classified as investing activities Common practice | MonetaryDuration, Credit | | 800300 | | Purchase of interests in associates Common practice | MonetaryDuration, Credit | | 800300 | | Purchase of interests in investments accounted for using equity method Common practice | MonetaryDuration, Credit | | 800300 | | Purchase of investment property Common practice | MonetaryDuration, Credit | | 800300 | | Purchase of investments other than investments accounted for using equity method Common practice | MonetaryDuration, Credit | | 800300 | | Purchase of mining assets Common practice | MonetaryDuration, Credit | | 800300 | | Purchase of oil and gas assets Common practice | MonetaryDuration, Credit | | 800300 | | Purchase of property, plant and equipment, intangible assets other than goodwill, investment property and other non-current assets Common practice | MonetaryDuration, Credit | | 800300 |
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