Recognizing purchasing and payables on the statement of cash flows is in fact straightforward.
If you’re applying indirect approach for presenting cash flows from operating activities, you’re essentially starting the group from operating profit that’s already including accruals basis purchases (i.e. expenses that you haven’t paid for yet for an example). Now, if we move further, there are the adjustments you make for the operating profit and the one relating to purchasing and payables is labeled as Change in payables and prepayments. The row essentially includes changes from the previous reporting period balance sheet as a comparison to this one within operating related payables and prepayments (i.e. loans are not included). For an example, if your current balance is lower than the comparative, you’ve incurred a cash outflow.
With the above we get the cash flow from operating activities; however there’s one more group purchasing impacts and it’s labeled as cash flows from investing activities. Within the cash flows from investing activities you’d present the investments you’ve acquired, like purchasing property, plant and equipment for an example. The cash flows from within the mentioned group are presented using the direct method, so you show there the exact amount you incurred an outflow.