Acquisition of Business (SF.CF.AcquisitionOfBusiness)

Acquisition of Business (SF.CF.AcquisitionOfBusiness) is the cash outflow for acquiring new businesses.

It is used when the acquisition is reported on the cash flow statement in one single line, as opposed to when it is reported as a decrease of various items from Assets and Liabilities.

Acquisition Costs on the purchase of a new business is sometimes reported as Total Payments, minus the cash held by the Acquired Target Entity.

Acquisition of Business (SF.CF.AcquisitionOfBusiness) includes:

  • Merger related expenses
  • Acquisitions, Net of Cash Acquired even if this ends up being a positive number

Acquisition of Business (SF.CF.AcquisitionOfBusiness) does not include: