CFI - Include Depreciation or not somebody, investing, activities, net, only

MeteorShower

Hey guys

When working out Investing CF for the year do you include accumulated depreciation with the asset? According to Schweser you are only examining the gross asset accounts from investing activities. However the other day I did a question in a mock in which uses Accumulated dpn in finding net investing cash flows.

Can somebody clear this up. What does the CFAI want us to know?

dece2011

Acc dep has nothing to do with calculating investing cash. When you sell an asset, you get cash in return and that is your CFI. Then you calculate gain/loss depending on your book value (which is asset - acc dep) and you reflect this in the income statement as gain/loss.