Question

Purchase of machinery by means of issue of shares should come under which cash flow statement

Answer 1

Purchase of machinery by means of issue of shares  will not reflected in cash flow statement because there is no cash flow involved in this transaction .. 

Therefore this transactions doesnt reflect in cash flow statement .

Answer 2

Purchase of a machinery is not disclosed in the cash flow statement.

• Purchase of machinery by payment of money is cash outflow, whereas selling of machinery is cash inflow. Transactions involving investment so financing that do not require cash use are excluded from a cash flow statement.
• In the given situation, against the issue of shares, an equipment is acquired, which means there is no cash deal. Thus, it shall not reflect in the cash flow statement.