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cash flow

Forums › ACCA Forums › ACCA SBR Strategic Business Reporting Forums › cash flow

Viewing 3 posts - 1 through 3 (of 3 total)
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  • April 19, 2013 at 3:05 pm #122905
    maria62
    Member
    • Topics: 5
    • Replies: 1
    • ☆

    Hello,
    In consolidated cash flows, when there is acquisition of subsidiary, why do I deduct the inventory, receivables and creditors of subsidiary? Are these included in the balance sheet of the reporting year?
    Thanks,
    Maria

    April 19, 2013 at 6:51 pm #122931
    Sangria9
    Member
    • Topics: 25
    • Replies: 285
    • ☆☆☆

    When you prepare consolidated SOFP, you include inventory, receivables and creditors of parent AND its subsidiary. So you should adjust your cash flows the same way – you look how the companies operate as single entity (as a group).

    April 22, 2013 at 1:35 pm #123251
    keven
    Participant
    • Topics: 6
    • Replies: 12
    • ☆

    Hey pple, I need help with understanding how to make T-accounts for various items eg PPE account, tax account..etc which are used in determining the figures to include in the cashflows statement. Any suggestions as to literature that I may have to read?

    Thanks.

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