Chapter 15 - Group accounts - statements of cash flow

Question 1

Proforma to calculate dividend received from associate

Answer 1

Bal b/f - Investment in associate
Our share of associate's profit
Our share of associate's OCI
Dividend received
Bal c/f - Investment in associate

Question 2

Proforma to calculate dividend paid to NCI

Answer 2

Bal b/f - NCI
NCI TCI
NCI Net assets purchase/disposal
NCI Revaluation surplus
Dividend paid to NCI
Bal c/f - NCI

Question 3

Proforma to calculate PPE cash outflow

Answer 3

Bal b/f - PPE
Less: Depreciation
PPE of acquired subsidiary
Revaluation surplus (pre tax - if given)
Disposal
Additions
Bal c/f - PPE

Question 4

Proforma to calculate proceeds from share issue

Answer 4

Bal b/f - s/cap + s/premium
Shares issued to buy subisdiary
Shares issued for cash
Bal c/f - s/cap + s/premium

Question 5

Proforma to calculate tax paid

Answer 5

Bal b/f - income tax + deferred tax
Tax on OCI
Tax expense
Tax paid
Bal c/f - income tax + deferred tax

Question 6

Proforma to calculate impairment

Answer 6

Bal b/f - goodwill
Goodwill on acquisition
Impairment
Bal c/f - goodwill

Question 7

What’s in cash flows from operating activities: adjustments to profit before tax for non-cash and non-operating items?

Answer 7

Depreciation
Impairment of goodwill
Share of profit of associate
Investment income
Interest expense
Increase in trade and other receivables
Decrease in inventories
Decrease in trade payables

Question 8

What’s in cash flows from operating activities?

Answer 8

Profit before tax
Non-operating and non-cash items
Interest paid
Income taxes paid

Question 9

What’s in cash flows from investing activities?

Answer 9

Acquisition of subsidiary net of cash
Purchase of PPE
Proceeds from sale of equipment
Interest received 
Dividend received from associate

Question 10

What’s in cash flows from financing activities?

Answer 10

Proceeds of share issue
Dividends paid to NCI
Dividends paid by parent company
Payment of FLL
Repayment of LT borrowings