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June 22, 2022 at 1:22 pm
Please assuming a subsidiary was started with 5,000 and in the same year the parent issued shares for 10,000. In the consolidated statement of cash flows, will the proceeds from issue of shares be 15,000 or 10,000?
John Moffat says
June 22, 2022 at 5:16 pm
In the consolidated SOFP it will be $10,000. Preparation of the consolidated statement of cash flows is not examinable in Paper FA (it is not examined until Paper FR).
June 23, 2022 at 12:17 am
Thank you Sir.
June 23, 2022 at 3:57 pm
You are welcome 🙂
January 14, 2021 at 9:39 pm
Sir, will associate companies sum come in the exam?
August 8, 2020 at 1:56 pm
Thanks a lot for the lecture and I have a question
How about dividends from associates? How do we have to deal with dividends, lets say, when associated company allocated all its retained earnings for the year and we also got dividends? Are these dividends our investing income or we have to add them to our investment in associate in the SFP? Thats a little bit confusing to me
August 8, 2020 at 3:23 pm
Dealing with dividends from associates is not examined in Paper FA. It is examined in Paper FR 🙂
However dividends received from the associate is treated as income in both the parent company and as a result in the consolidated accounts. They do not affect the amount on the SOFP.
August 9, 2020 at 3:53 am
thanks a lot for the answer 😉
August 9, 2020 at 10:16 am
February 20, 2020 at 7:24 am
I do not say that it won’t show at all.
If there is no consolidation then the investment simply appears in the accounts of the company owning the shares, at cost as usual.
February 20, 2020 at 2:12 am
But in your lecture note it says that if no consolidation, associates will be treated as a trade investment; non current asset in the SoFP, so how do you say it won’t show at all? This is pretty confusing. Is it that the it won’t include retained profits to the figure or it won’t show at all? Pls reply. Thank you
August 26, 2021 at 6:45 pm
i think it meant not show in consolidated accounts(as will be none), of course will be shown in own company SOFP
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