Consolidated cashflows

Question 1

What needs to be shown in the disclosures for cash flows generally?

Answer 1

A breakdown of what cash equivalents have been included
Any significant non cash transactions that have occured in year - e.g changes to lease liabilities or loans
A note should be included for PPE showing how much PPE was purchased by a finance lease - to show outstanding liability

Question 2

Do you need to time apportion for the date of acquisition/disposal of a sub in year for a consolidated cash flow?

Answer 2

No

Question 3

What needs to be shown in the disclosures for cash flows when there has been an acqn of a sub?

Answer 3

A reconciliation of PBT of sub to cash generated from operations
A breakdown of the FV of the sub (NA - NCI), goodwill (Total purchase price less FV) and net cash aqcuired (Cash paid - cash of sub)

Question 4

What needs to be shown in the disclosures for cash flows when there has been a disposal of a sub?

Answer 4

A reconciliation of PBT of sub to cash generated from operations
A breakdown of the FV of the sub (NA - NCI), profit/loss on disposal (accounts) and net cash disposed of (Cash recieved + profit on disp in accounts - cash of sub)

Question 5

If an entity makes a £20,000 lease payment within the year that is 25% interest, how should this be recorded in the statement of cash flows?

Answer 5

25% of £20,000 should be included as an expense in the interest paid outflow in operating activities

The remaining balance should be included as an outflow in financing activities

Question 6

How would you account for a revaluation of PPE in the year when trying to work out PPE adns/disposals for the cashflow?

Answer 6

Revaluations upwards would be treated as a debit (like an addn)
Revaluations downwards would be treated as a credit (like a disposal)