13. Group Accounts - Statements of Cash Flow

Question 1

What are cash equivalents?

Answer 1

Short term, highly liquid investments that are readily convertible into known amounts to cash

Question 2

What item does the indirect cash flow statement start with?

Answer 2

Profit before tax

Question 3

Where is impairment on goodwill adjusted for in the consolidated statement of cash flows?

Answer 3

Add back to cash flows from operating activities

Question 4

Where is the share of the profit of associate adjusted for in the consolidated statement of cash flows?

Answer 4

Taken off of cash flows from operating activities - what we actually receive is dividends

Question 5

Where is acquisition of a subsidiary (net of cash received) adjusted for in the consolidated statement of cash flows?

Answer 5

Taken off in cash flows from investing activities

Question 6

Where are dividends from associates adjusted for in the consolidated statement of cash flows?

Answer 6

Added back under cash flows from investing activities

Question 7

Where are dividends paid to the NCI adjusted for in the consolidated statement of cash flows?

Answer 7

Taken off of cash flows from financing activities

Question 8

Where are dividends paid by the parent company adjusted for in the consolidated statement of cash flows?

Answer 8

Taken off of cash flows from financing activities

Question 9

How do we adjust the consolidated change in working capital/PPE for subsidiary acquired during the year?

Answer 9

Take off the assets/liabilities of the subsidiary