Why are gains/losses added back to (or deducted from) the cash from operations section of a cash flow statement? 1) They often represent insignificant amounts that don't affect end results. 2) They are an accounting recognition of a gain or loss and don't affect cash flow. 3) Cash flows after the add back (or deduction) look a lot better. 4) It is established practice to perform this step as part of the process of creating a cash flow statement