As we know that cash flow from operating activities includes changes in Accounts Paybles. This seems okay for a company having accounts payables related to company’s normal operational expenses. But what if Accounts payable includes payable against normal operating expenses and payables against construction of buildings.
Company’s business is constrcution of buildings and lease on rent under IAS 17.
If payables against construction is included in cash flow from operating activities it gives a large value of cash inflow from operating activites if 2007 payables paid out in 2008.
Do you think that payables against construction can be shown under cash from from investing activites or what is an alternative.