# IAS 7 Cash Flow Example 3

1. says

I just find the revaluation TNCA is 60,000, but why it not adjust in the calculation of goodwill,
inv cost +nci-net assets-revaluation=goodwill? but then there will not good will.

2. says

Sir but for the cash n equivalents br forward there is a cash balance of 12k and a bank overdraft of 16k aswell so dont we take it as a net amount of 4k negative cash n equiv b/fwd?

Pls help

• says

Is it in “Cash and cash equivalents”? – if it isn’t, post again and I’ll check out the video and the question in the course notes (incidentally, what’s the question called)

• says

Mike,

Please check the figures of given example 3 in notes on page 120. Inventory and CL (bank loan) differs from video example, also in Answers section of notes, page 229 cash b/f is (4000), not 12 000 like in video, it is something connected with changes in standard? In what example cash b/f is correct? . Also in notes answer I can’t fid repayment of bank loan by 16000. It should be financing activity cash outflow, it shouldn’t?
As I understood example in notes is updated, but video not.
Thank you for your lectures, Mike, they save a life !!!!

• says

Liucinav – I seem to remember changing the example and I probably haven’t re-recorded the session

(is this the Liucina that I know from lectures?)

• says

Thanks, It is nice, that you remember me:))

3. says

The figure for inventory B/F in the notes is now \$33 (not \$17) and so net cash flow is now \$27.4 Everything else is the same.

Not really a problem, but thought I would mention it, just in case some people (like me!), get confused as to why their answer is different from the lecture.

• says

Is my lecture out of date? When I change an example I sometimes forget to re-record the lecture. I’ll try to get to it this next season.

4. says

please explain how we treat a revaluation reserve in consolidated cash flow and which calculation it affects and also which heading on the cash flow it affects (I’m assuming investing activities)

• says

It doesn’t appear in the cash flow – it’s not cash! It DOES affect the calculation of the amount spent on TNCA purchases because it accounts for some of the movement on the TNCA account

5. says

Hi!

How are the dividends are calculeted – how did you split 10 600 into 10 000 own and 600 NCI dividents?

6. says

I’m confused with the Goodwill calculation. The NCI share seems to have been ignored, only the Goodwil for the Holding Company is included. Should the 10,000 Goodwill be split somehow between Holding Co and NCI, am I missing something?

• says

You have to assume, in the lack of contrary information, that the nci is valued on a proportional basis and therefore has no goodwill

• says

@paddycrehan, Calculate the fair value of the consideration paid. Calculate the figure fort he nci investment. Add the two together. Compare that total with the fair value of the subsidiary net assets as at the date of acquisition. The difference is goodwill. Compare that figure with the amount for INCA shown on the closing Statement of Financial Position. And what have you got?

7. says

been practicing some cash flow exam Q’s and am finding i’ve missed a few items in my answer. Looking at the solutions these figures were all in the Question – therefore I’m thinking is it better to put too many lines in my answer (I mean will I be penalised if I put in too much, or just credit for the lines I get right?)

8. says

The lectures r perfect! He’s very good. Did i imply something else? English is not my 1st language sorry.

9. says

So…was my internet connection. All’s well now. u sir, don’t know the half of my probs but thank you.

10. says