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For the PBT, why do we need to add the 6m PBT of subsidiary when we calculating the cash flow movement.
Isn’t that t he 183 as per Weston group income statement already thcluded the share of profit of subsidiary?
Northen is only be sold half way during the financial year, it should have captured half of the PBT.
Can someone please help me? Thank you.
Hi,
The $6m is from the discontinued operation, and when looking at the cashflow we can’t just ignore the discontinued operations as they will have contributed to the cash flow during the part of the year that they were part of the group.
We don’t need to pro-rate it due to it only being controlled for six months as that will already have been done in preparing the group accounts.
Hope that clears it up.
Thanks
In one your lecture at 49 minutes when goodwill calculation, lecturer putted b/f on the credit side while it is asset and should be shown at debit side. What is a rationale?
Here below the link of lecture:
https://youtu.be/G6cE2xcas00Also in this video tutor add back loss on disposal (17:51 minute)
What is rationale here? As a result of it adding back movement of cash is greater to $29m.@khamzat said:
In one your lecture at 49 minutes when goodwill calculation, lecturer putted b/f on the credit side while it is asset and should be shown at debit side. What is a rationale?Here below the link of lecture:
https://youtu.be/G6cE2xcas00The rationale is that it was a slight mistake.
@khamzat said:
Also in this video tutor add back loss on disposal (17:51 minute)
What is rationale here? As a result of it adding back movement of cash is greater to $29m.A loss on disposal is a non-cash item and so will need to be added back to remove the loss from the accounts.
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