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How to disclose in the consolidated cash flow an increase from the rise in PPE because of the assets, sitting in the balance sheet of acquired subsidiaries?
You would adjust the PPE T-account for the increase in FV. The cash flow we are calculating in the PPE T-account is the purchase of PPE figure, so by including the FV uplift we are ensuring that the cash outflow is correct and not impacted by the FV adjustment on consolidation.
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