Group SCF – Introduction – ACCA (SBR) lectures
Reader Interactions
Comments
Leave a Reply
You must be logged in to post a comment.
Free ACCA & CIMA online courses from OpenTuition
Free Notes, Lectures, Tests and Forums for ACCA and CIMA exams
March 2026 ACCA Exams Results
Save 20% on ACCA & CIMA Books
Interactive BPP books for June 2026 exams, recommended by OpenTuition.
Get discount code >>
Can someone explain given the change of 2025 that cash flow statement starting with operating profit (instead of PBT), why do we still do the adjustment of gains/losses on disposal of tangibles and subsidiaries which are not included in operating profits (on SPL) in the first place?
Hi Jocelyn,
I believe the items you are referring to are to do with the change in the value of Inventories, Payables and Receivables as a result of the disposal. These items in the subsidiary must be adjusted as they are a part of the operating activities of the group. The title of this line item in the example given, does not lend itself to an easy understanding of this.
If you are take a look at the SBR notes on ACCA Sept25-June26 Chapter 19. 3.4 it breaks this adjustment down in detail.
Regards,
Blake
Can they still ask you to do a full group cashflow in the Dec22 exam?
“you are screwed” LOL. You are an amazing lecturer sir. You have been very very heplful for me. Thank you so much.
Hi there,
I noticed the same.
In fact our host said clearly that Share of Associate’s Profit should be deducted (being a non-cash item). The proforma is misleading, though!
Regards
Hi,
The updated notes show it being deducted.
Regards
Hi professor…may I know why we are adding the Share of Associate’s Profit? Shouldn’t we deduct it while calculating cash flow?
We are deducting it if you check the latest notes.