Group statements of cash flows

Question 1

Direct Method

Answer 1

discloses major classes of gross cash receipts and gross cash payments

too costly to prepare

Easier to understand for primary users

Question 2

Indirect method

Answer 2

adjusting the net profit/loss for period with add backs and deductions

Easier to prepare

less well understood - require level of accounting knowledge

Question 3

Consolidated Statement of Cash Flows

Answer 3

CF from OPERATING activities (12)
CF from INVESTING activities (4)
CF from FINANCING activities (5)

Question 4

Cash Flows from OPERATING activities 1

Answer 4

1 Profit before tax X
2 Depreciation X
3 Impairment X

Question 5

Cash Flows from OPERATING activities 2

Answer 5

4 Profit for Sale of NCA (X)
5 Share Associate profits (X)
6 Investment income (X)
7 Finance Costs X

Question 6

Cash Flows from OPERATING activities 3

Answer 6

8 Inc in inventories (X)
9 Inc in receivables (X)
10 Inc in payables X

11 Interest paid (X)
12 Income tax paid (X)

Question 7

Cash Flows from INVESTING activities

Answer 7

1 Dividends received from Associate X
2 Interest received X
3 Purchase of PPE (X)
4 Proceeds from property sale X
5 Acqu of sub minus cash acquired (X)

Question 8

Cash Flows from FINANCING activities

Answer 8

1 Issue of Ordinary Share capital X
2 Repayment of load (X)
3 Dividends Paid to NCI (X)
4 Dividends paid to parent SH’s (X)

Question 9

NET increase in Cash and Cash Equivalents

Answer 9

Cash & Cash equivalents Brought Forward
Cash & Cash equivalents Carried Forward

Question 10

Dividends paid to NCI

Answer 10

NCI b/fwd
+ NCI on Sub acquisition
+ NCI share of profit & OCI
- NCI on Sub disposal
- Dividend paid (bal fig)
NCI c/fwd

Question 11

Dividends from Associate

Answer 11

Associate b/fwd
Add Share of profit & OCI
Add Purchase of associate
Less Disposal of associate
Less Cash dividend received (bal fig)

Associate c/fwd