consolidated cash flow

Facebook Ltd acquired 100% of WhatsApp Ltd’s interest fifteen years ago. In 2011, Facebook bought 40% equity shares in
one of its close competitors Instagram plc, and on the 1st of January 2019 Facebook acquired 75% interest in TikTok co.
Below is the draft consolidated accounts for the Facebook Group.
Draft consolidated statement of profit or loss and other comprehensive income for the year ended 31 December
2019
M’000 M’000
Profit generated from operations 8,910
Associate’s share of profit after tax 2,100
Income from long-term investment 930
Interest payable (900)
Profits before tax 11,040
Taxes on profit
Income tax 2,346
Deferred tax 624 (2,970)
Profit after tax for the year 8,070
Profit Attributable to: Parent 7,470
Non-controlling interest 600
8,070
Draft consolidated statement of financial position as at 31 December 2019
2018 2019
M’000 M’000
Assets
Non-current assets
Tangible assets
Buildings (net book value) 13,200 12,450
Machinery @ cost 8,400 18,000
Accumulated depreciation (6,600) (7,200)
net book value 15,000 23,250
Goodwill – 600
Investments in associates 6,000 6,600
Long-term investments 2,460 2,460
23,460 32,910
Current assets
Inventory 6,000 11,850
Receivables 7,650 11,100
Cash 10,920 27,090
24,570 50,040
48,030 82,950
Equity and liabilities
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Equity
Share capital: 25 thebe shares 12,000 23,640
Share premium account 12,570 17,298
Retained earnings 15,000 20,670
39,570 61,608
Non-controlling interest – 690
Total equity 39,570 62,298
Non-current liabilities
Finance lease obligations 1,020 4,260
Long-term loans 3,000 8,760
Deferred tax 78 180
4,098 13,200
Current liabilities
Trade payables 1,680 3,000
Finance lease obligations 1,200 1,440
Income tax 1,302 2,772
Interest accrued and finance charges 180 240
4,362 7,452
48,030 82,950
Note
1. During 2019, there were no acquisitions or disposals of buildings. Machinery was sold for M3m resulting in a
M0.6m profit, the machinery originally cost M3m. New machinery was brought in in 2019 which included
machinery worth M5.1m acquired under finance lease.
2. Information relating to the acquisition of TikTok co.
M’000
Machinery 990
Inventory 192
Trade receivables 168
Cash 672
Trade payables (408)
Income tax (102)
1,512
Non-controlling interest (378)
1,134
Goodwill 600
1,734
5,280,000 shares issued as part consideration 1,650
Balance of consideration paid in cash 84
1,734
The loans were issued at a discount in 2019 and their carrying amounts at 31st December 2019 included
M240,000 which was representative of finance costs attributable to the discount and allocated in respect of
the current reporting period.
Required
Using the indirect method and as required by IAS 7, prepare a consolidated statement of cash flows for the
Facebook Group for the year ended 31 December 2019. Notes to the statement of cash flows are not necessary