Initially, the CICA Handbook did not require financial statements to include information about noncash investing and financing activities. The financial statements reported only changes in working capital (defined as current assets less current liabilities) and so transactions such as the use of long-term debt to purchase property, plant, and equipment, or conversion of debt into equity were excluded.
Required
Discuss the present CICA Handbook's requirements with respect to disclosure of noncash financing and investing decisions, and explain why you think the required disclosure does or does not benefit users.