Why do accounting rules do not consider a land purhcase (from cash recieve by issuing stock) to contain cash flow transactions?
Because there’s no cash flow into or out of the company: they issue stock, they get land. No cash flow.
But how does issuing stock not provide the company with cash? And then they use that cash to purchase the land?
I am confused on where there would be no cash flow.
I give you stock; you give me land.
“A company issued shares to acquire a large tract of undeveloped land for future development”
How did you know this transaction did not involve cash? You could always interpret this as the company recieve cash from issuing shares and using those proceeds to purchase land…
Because cash isn’t mentioned.
You’re making these things too complicated. Take the language at face value: A issued stock to B, B gave land to A. That’s it.