Is gain/loss on asset disposal operating or non-operating? In financial accounting the gain/loss was reversed from the operating section as it is not an operating activity and is part of the investing? Example: You sold equipment with original cost of S100 and had $10 depreciation and sold it for $95 cash-> thereby you gained S5 as the book value after depreciation is $90 Where would you place this gain of $5 on the statement of cash flows and the S95 cash? Is it that you do minus $5 to reverse the impact on operating cash flow and include the positive $95 cash under investment cash flows