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SBR

Group SCF - Acquisition disposal of subsidiary - ACCA (SBR) lectures

VIVA Subject Guide
YouTube video

13 Comments

  1. Hayden
    Does anyone know why the 3 isn't a decrease for receivables?
  2. MelancholicReflections
    For anyone wondering why PPE was ignored: property, plant, and equipment is neither a cash flow nor part of working capital.
  3. Farhaan
    Although its not part of working capital, a cash flow can still arise because of purchase/sale of PPE in investing activities and after doing my own calculations we actually get an outflow of 15m but it hasnt been included in the answers or the video, I guess mostly because there is lack of information in the question about depreciation, revaluation etc. Change in B/F and C/F balances of PPE is important dont ignore it!!
  4. Alvaro
    Hello sir,

    Would you please explain why PPE is ignored? Shouldn’t it also have been considered?

    Thanks a lot
  5. psidhar101
    Probably because change in PPE is not an operating activity.
  6. Kritika
    why have we not considered ppe?
  7. sabina1717
    Can somebody explain me, why change in PPE is ignored?
  8. Trong Hieu
    I think so, you can see Teacher Chris solve this example in this video 'https://www.youtube.com/watch?v=dbaT-UNjRwQ' - an old video (at year 2019) than this video above by Teacher Kim Smith.
    In this old video Teacher Chris already included change in PPE by acq Sub.
    I also read the ask in note and they also do not include PPE change :(
  9. FathimaJazari
    thanks
  10. kelkar
    Explanations that a parent do not spend cash on particular inventory , payable , receivable and the way to do in rows are good! I did it mechanically because other provider taught me to do so without thinking. I was told that I need to add inventory , payable , receivable to the balance brought forward and do not even think about why - this was an advice from other provider . There were also good explanations on NCI dividends and Associate dividends in the previous sessions .
  11. YASH
    Hello!

    Thanks for the lectures.

    I want to ask one thing that why did you add the subsidiary net assets figures to the current asset balances in the group for calculating cash flow adjustments because when we prepared the group accounts we already added them into the SFP.

    Correct?

    Thanking you
    Yash Gupta
  12. pv
    Hello sir,

    Can i present all the workings in 'T' format in the examination?

    Will there be any mark reduction incase i present in the aforementioned format?

    Thanks
  13. P2-D2Tutor
    Hi,

    You can present the working in and format you wish, however I personally recommend presenting them in a T-account format.

    You will not lose any marks however you present your workings, so long as it is clear to the marker what you are doing.

    Thanks

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