operating activities

Presentation1

1. 230-970Real Estate—General230 Statement of Cash Flows

   This Subtopic addresses how a real estate entity classifies cash payments to purchase real estate in the statement of cash flows. Real estate is generally a productive asset, so its purchase is an investing cash outflow; but if a developer acquires real estate specifically for resale (to be subdivided, improved, and sold in lots), the payment is an operating cash flow because the property is akin to inventory.