Which transaction among the following is NOT disclosed in the cash flow statement due to the non-cash nature of the transaction?

Assets acquired by issue of shares

The correct answer is option 2- Assets acquired by issue of shares.

The cash flow statement reports only transactions that involve actual cash inflows or outflows. Non-cash transactions are not included in the cash flow statement. Assets acquired by issue of shares – This is a non-cash transaction because no cash changes hands; the company acquires assets in exchange for equity. It is not disclosed in the cash flow statement.

OTHER OPTIONS

• Disposal of Equipment and non-current investments – This involves receiving cash for the sale, so it's a cash inflow and is disclosed in the cash flow statement in investing activity.

• Redemption of preference shares – This involves paying out cash to shareholders, so it's a cash outflow and is disclosed in the cash flow statement under financing activities.

• Sale of property – This involves receiving cash and is therefore a cash inflow, usually shown under investing activities in the cash flow statement.