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Totnes - ACCA SBR Question - Spreadsheet Exercise 3 - CF

Totnes is a public company with a year end of 31 December 20x6. The company has several subsidiaries.

Requirement

Adjust the spreadsheet for the three transactions listed below. Then compare your answer to the model answer.

Transaction 1

During the year, Totnes purchased an associate for cash and paid a dividend to NCI. The total of both amounts was shown as the purchase of an associate in error. NCI in the opening and closing CSFP was $500m and $600m respectively. The NCI share of PAT was $200m, and the NCI share of TCI was $250m.

Transaction 2

A gain on the revaluation of an investment property of $200m has been credited to other components of equity in error.

Transaction 3

A new defined benefit pension plan has been incorrectly treated. The draft financial statements show an expense in the profit and loss account of $20m, which represents contributions paid. The service cost was actually $25m. The net interest cost was not material. The remeasurement difference was $8m.

	A	B	C	D	E	F
1	Totnes	Draft CCF	Adjustment 1	Adjustment 2	Adjustment 3	Final CCF
2	CCF	$m	$m	$m	$m	$m
3
4	OPERATING
5	Profit before tax	60				60
6	Gains on investment properties	0				0
7	Pension service cost	0				0
8	Depreciation	200				200
9	Impairment of goodwill	640				640
10	Increase in inventory	(500)				(500)
11	Increase in payables	400				400
12	Pension contributions paid					0
13	Tax paid	(150)				(150)
14		650	0	0	0	650
15
16	INVESTING
17	Purchase of PPE	(300)				(300)
18	Purchase of associate	(700)				(700)
19	Purchase of subsidiary	0				0
20		(1,000)	0	0	0	(1,000)
21
22	FINANCING
23	Dividends to NCI					0
24	Dividends paid	(200)				(200)
25		(200)	0	0	0	(200)
26
27	CHANGE IN CASH	(550)	0	0	0	(550)
28	CASH AT START OF YEAR	1,500				1,500
29	CASH AT END OF YEAR	950	0	0	0	950