Major Cineplex Questions | The Investment Quadrant by The Fifth Person

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Wan Kok kin asked 3 years ago

If the company using non cash transaction to purchase property , plant and equipment . And it did not recorded in cash flow statement . Should i include the amounts as Capex ?

2 Answers

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Victor Chng answered 3 years ago

Hi Kok Kin,

what do you mean by non-cash transaction to purchase property plant and equipment?

Wan Kok kin replied 3 years ago

The company ( Astro ) in 2018 recorded a increase of property plant and equipment about 600 million in balance sheet . But in cash flow statement , it only recorded a purchase of 100 million , In the note , i find out some of the property plant and equipment are acquired through non cash transaction .I also dont understand what is this non cash transaction mean and how it work .

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Victor Chng answered 3 years ago

Hi Kok Kin,

I read the annual report, the capex is finance through finance lease. Finance lease is basically someone buy the PPE and rent it to Astro.

Wan Kok kin replied 3 years ago

So , should i include the finance lease interest as a capex?

Victor Chng replied 3 years ago

I don;t you need to since it is a development capex instead of maintence capex

Wan Kok kin replied 3 years ago

Thank you .

Victor Chng replied 3 years ago

welcome :)