F2 - 13. Group Accounts - Statement of Cash Flows

Question 1

What is the definition of cash?

Answer 1

Cash on hand and demand deposits

Question 2

How are overdrafts represented?

Answer 2

As ‘negative’ cash - net off against cash

Question 3

What are cash equivalents?

Answer 3

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

Question 4

What 2 additional headings appear under Cash flows from operating activities in a group statement of cash flows?

Answer 4

1. Impairment of goodwill

2. Share of profit of the associate

Question 5

How is impairment of goodwill handled in the group statement of cash flows?

Answer 5

Added back to profit before taxation under cash flows from operating activities

Question 6

How is the share of profit of associates handled in the group statement of cash flows?

Answer 6

Deducted from profit before taxation under cash flows from operating activities

Question 7

What 2 additional headings appear under Cash flows from investing activities in a group statement of cash flows?

Answer 7

1. Acquisition of the sub (net of cash acquired)

2. Dividends received from associates

Question 8

How is acquisition of subsidiaries handled in the group statement of cash flows?

Answer 8

Deducted under cash flows from investing activities, net of cash acquired

Question 9

How are dividends received from associates handled in the group statement of cash flows?

Answer 9

Added back under cash flows from investing activities

Question 10

What additional heading appear sunder Cash flows from financing activities in a group statement of cash flows?

Answer 10

Dividends paid to the non controlling interest

Question 11

How are dividends paid to the non controlling interest handled in the group statement of cash flows?

Answer 11

Deducted under cash flows from financing activities, net of cash acquired