cash flow

This topic has 2 replies, 3 voices, and was last updated 13 years ago by keven.

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April 19, 2013 at 3:05 pm #122905
maria62
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- Topics: 5
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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
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- Topics: 25
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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
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- Topics: 6
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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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