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- February 8, 2017 at 12:12 pm #371599
CSOFP at 31.12.x5
x4(‘000) x5(‘000)
NCAGoodwill 200 580
CA
Inventory 900 1200
Receivables 600 900
Bank 450 650
Total Asset 5950 10570Share capital 2000 3200
Profit/loss 1400 2280
Share premium 500 1700
Debenture 800 1000
Payable 300 550
Tax payable 180 320
Dividend payable by H 200 320
Dividend payable by S to NCI 20 30
Dividend payable by SS to NCi – 20
NCI in S 550 640
NCI in SS – 510
5950 10570CIS at 31.12.x5
‘000
Sales 10000
COS -6000
GP 4000
Expense -2220
PBT 1780
Tax -280
PAT 1500NCI in S 120
NCI in SS 180
-300
1200
dividend paid -320
880Additional point:
Expense include impairment of goodwill, profit on disposal of nca and depreciation of RM410,000On 1.10.X5, parent acquired 80% of SS by issue share 800,000 o/share in Parent (Market Value Rm2 each) and cash payment of Rm400,000. The net asset of SS on 1.10.x5 were as follows
‘000
NCA 1000
Inventory 300
Receivable 250
Bank 350
Payable (150)
NCI (350)
1400
The group policy is to amortize goodwill over 5 years. S was acquired in X2
During the year, nca of nbv RM750,000 were sold for RM850000I would like to ask how to calculate the dividend paid by S to NCI and dividend paid by SS to NCI in this question?
Besides, The group policy is to amortize goodwill over 5 years. S was acquired in X2
for the sentence above what does it useful because the cash flow is do for X5 so how do we know the impairment of goodwill is how much for S?February 12, 2017 at 8:51 pm #372121Hi,
To calculate the dividend paid to the NCI then you will use a T-account for each of S and SS. You will need to put in the opening and closing NCI balances, along with any NCI share of profits/OCI. Further adjustments would be made for and acquisition/disposal of subsidiaries during the year.
Try it and see how you get on.
Where is the question from as it isn’t really something that I’d expect in a P2 exam. Never have be had group SCF with a complex group and never would we have the amortisation of goodwill, as that isn’t allowed under IFRS.
Thanks
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