Free ACCA & CIMA online courses from OpenTuition

Free Notes, Lectures, Tests and Forums for ACCA and CIMA exams

20% off ACCA & CIMA Books

OpenTuition recommends the new interactive BPP books for March and June 2025 exams.
Get your discount code >>

Group SCF – Example – ACCA (SBR) lectures

VIVA

Reader Interactions

Comments

  1. Great Lecture. I paused the video and did it for myself first and eventually got it to balance on excel when I realised I had the Net Cash paid for the Subsidiary in reverse SMH!
    Just one correction, the Receivables changes supposed to be 51 and not 56 馃檪

    • Hi, could you explain to me how there is no NCI ? I get that the parent acquired ALL the shares of Fred, hence the No NCI but how is there an Opening and closing balance of NCI in the SOCIE (given in the question). Naturally, we would take that as NCI on acquisition for the calculation of Goodwill yes ?

      • The NCI in the SOCIE is of other subsidiaries, as its been a group prior to the purchase of the new subsidiaries, as you can see the group accounts were created in 2014 as well, however the new sub was only purchased in June 2015, so there was no new NCI.

  6. Hi,
    Good evening.

    Please I thought you once said we do not record dividend paid to Owners of Parent in the group cashflow, but I see now that it was recorded, pls can you explain better to me.

    Guess, I am mixing up things.

    Thank you

  9. Hi Chris,

    Great video, very helpful and insightful, had me chuckling when you remembered about the PPE for subsidiary.

    Anyway, I’m having an issue, comparing my figures with the answer booklet, the cash generated from operations adds up to 501, whereas yours and mine adds up to 447, could be an error on answer booklet.

    Also, the final figure in the SCF is coming up to 150, -40 from c/f figure of 190

    Help please?

    • First, I think we need to distinguish ‘Cash generated from operations’ and ‘Cash generated from operations activities’ (We can see in formula table in Note).
      Second, I also think 501 is not right figure.

  10. @11:10. The tax paid has been credited in the T account. Shouldn’t it be debited since we have paid the outstanding liability thereby reducing the overall tax payable?

    • When last year’s balancing amount was placed on the debit side (to make last year’s figures in the account balance).

      In other words, the credit entries exceeded the debit entries last year

      In other words, there was a credit balance in the account last year

      So, to make both sides equal last year, we needed to add an amount (the balancing figure) into the debits

      You may look at that balancing figure from another view point. If you add up all the credit entries in an account and then add up all the debit entries, you may find that the total of the credits exceeds the total of the debits by, say 拢120

      Now, when extracting a trial balance, we need to check that the sum of all the debits through the year equals the sum of all the credits in that year.

      But to list out all those millions of entries would be time consuming, expensive and very likely inaccurate

      But if we summarise the figures in each of the accounts that feature in the trial balance, we can then simply list the summary figures from each of the accounts

      In the example that I made up above, the summary figure was 拢120. In Chris’s example, the summaries from last year were two excesses of credits over debits of 拢190 and 拢110

      So credits were greater and the brought down amounts represents those summary differences from last year

      Similarly, this year, the credits have exceeded the debits by 拢220 and 拢150 so we need that amount to be shown on the debit side so that both sides of the account add up to 拢395

      That’s how we arrive at the carried forward and brought forward amounts

      But when preparing a statement of cash flows, these balancing amounts will be given in the question

      In the Chris example, all those four amounts are shown – 2 in each of the two statements of financial position

      If those figures are shown in last year’s statement of financial position as included within liabilities, then they represent figures brought forward at the start of this year as liabilities that existed at the end of last year and are thus shown on the credit side of the account as brought forward

      If you’re at all uncertain about balancing T accounts, a quick trip down memory lane in John’s lectures for the FA paper (the paper that used to be known as F3 Financial Accounting) would be time well spent

      OK?

      • On reflection, I may have misinterpreted your question. Are you asking when the abbreviation should be b/f and not c/f (and vice versa)?

        If you imagine that both abbreviations are simply a quicker way of writing “Brought forward from last year” and
        “Carried forward into next year”
        does that make it easier?

  14. Hi,Sir. May I know the reason why should include the dividend paid to parent within the cash flow? Isn’t neither a cash inflow nor outflow within the group?

    • Hi,

      Thanks for spotting this, I’ll update the video at some point in the future if I get the opportunity. It doesn’t seem worth doing at the moment as it is a lot of work for just a small typo.

      Thanks

Leave a Reply