Group statement of cashflows Flashcards
What are the three main headings in the cashflow statement?
Operating
Investing
Financing
What is the proforma for the cashflows from operating activities?
PBT Adjustments for: Depreciation (+) Amortisation (+) Impairment of goodwill (+) Share of Associate’s profit (-) Investment income (-) Interest expense (+) Pension expense (CSC, net interest, PSC) (+) Gains/Losses on financial instrument (-/+)
Increase/Decrease in TR
Increase/Decrease in Inventories
Increase/Decrease in Payables
Interest paid (-)
Income taxes paid (-)
Cash paid to pension (-)
What is the pneumonic for working out part of the operating activities?
AIR and LIA
What is a cash equivalent?
Short term, highly liquid investments that are readily convertible into known amounts of cash and which are subject to insignificant risk of changes in value
What is operating actives?
Cash based profit and loss
Why would you want operating activities to be positive?
There have been non cash adjustments that you would expect to increase the total figure
What is investing actives?
Anything to do with NCA that are cash based (PPE, Intangibles, Group Companies, Financial Assets)
Where does the acquisition of a subsidiary (net of cash acquired - bank) go and is it positive or negative?
In investing activists as negative
Where does dividends received from associate go and is it positive or negative?
In investing activities as positive
What is financing actives?
Anything to do with debt and equity except interest paid
Where does dividends paid to NCI go and is it positive or negative?
In financing actives and negative
Where does dividends paid by parents company go and is it positive and negative?
In financing actives and negative
What are the three sections of operating actives?
Non cash adjustments
Working capital
What is the top row of operating activists?
PBT
What do you have to adjust for in the working capital movements?
Adjust by subsidiary acquired or sold
