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Sir,
So far i have done cashflow to equity base on the format you wrote in AFM lecture note.Come to Arthuro co, i found out that they have added cashflow from selling asset, deducting profit on sale(non cash i assume) etc etc. Its like IAS 7.
I wonder to what extent do i need to follow IAS7 statement of cash flow format for AFM FCF to equity?
For example do i also need to add cashflow flow selling subsidiary or add impairment?The question is asking for the dividend capacity in a ‘normal’ year which means calculating the cash available in a ‘normal’ year. The way that the information is given (e.g. starting from profit and therefore needed to add back the depreciation) means that you are effectively preparing a cash flow statement, but there is certainly no need to set it out in IAS 7 format.
Things such as selling a subsidiary are not things that would happen in a ‘normal’ year.
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Thank you 🙂
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