Investing activities relate to the acquisition and disposal of long-term assets and other investments not included in cash equivalents. Separate disclosure of these cash flows is crucial as they represent the extent to which expenditures have been made for resources intended to generate future income and cash flows. Transactions related to long-term investment are also included in this category.

Cash Outflows from investing activities primarily include cash payments made to acquire fixed assets, including intangibles and capitalised research and development. Other major outflows are cash payments to acquire shares, warrants, or debt instruments of other enterprises, provided they are not held for trading purposes. Additionally, cash advances and loans made to third parties are considered investing outflows, except when made by a financial enterprise where they are operating activities.

Conversely, Cash Inflows from Investing Activities arise from the disposal of assets. This includes cash receipts from the disposal of fixed assets (including intangibles) and the sale of shares, warrants, or debt instruments of other enterprises. It also includes cash receipts from the repayment of advances or loans made to third parties.

Furthermore, specific revenue receipts are classified here. Interest received in cash from loans and advances and dividend received from investments in other enterprises are treated as cash inflows from investing activities. It is important to note that for financial enterprises, advances and loans are operating activities, whereas for others, they are investing activities.