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Understanding Note Receivable Disclosures in Cash Flow Statements: A Comprehensive Guide
note receivable disclosure in cash flow

Note receivable, or trade receivables arising from the issuance of notes, are financial instruments that represent a contractual obligation for a borrower to repay a debt in the future. In the context of cash flow disclosure, interest paid on such notes, if any, would be included in the cash outflows related to financing activities in the cash flow statement. According to the relevant accounting standards, the payment of interest on note receivables, whether it's expensed or capitalized, should be disclosed in the cash flow statement. Therefore, the interest paid on a note receivable would be reflected in the "payment of interest" item within the筹资活动现金流量部分。