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Why are gains and losses reconciling items in CFO?

Why are gains and losses reconciling items in CFO?
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Gains and losses arise as a result of the difference between the revenue and expenditure in the form of the cash paid or received and book value of assets bought or settlements made. It is due to the net income and the cash impact shall be shown under the investment section of the balance sheet. When we calculate the cash flows from operations, we need to take the net income and adjust all gains and losses accordingly to arrive at the cash flows from operations (CFO).

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