cash flow-realised through use

It really depends on whether there exists an element of the revaluation reserve which relates to that particular piece of property but, if there IS such an element, I think ( without seeing the question ) that I could sympathise with your proposed accounting adjustment.

i have a question on cash flow don,t understand how cash flow at the end and begining of the period is derived . i get mixed up . can u pleae explain for exams in question bbp revision kits 2012 question 82 DICKSON.

Hi

I don't have a BPP revision kit! However, if you look at the "brought forward" Statement of Financial Position and look in current assets, you'll see a figure for "Cash" or "Bank" ( it will be in current liabilities if it's an overdrawn figure at the bank - or it could be in both! Cash in hand as well as an overdraft! )

That's how you arrive at the figure for "Cash and equivalents brought forward"

Do the same exercise on the closing Statement of Financial Position and you'll find the figure for "Cash and equivalent carried forward"

The only other thing you have to be careful about is if there are some cash equivalents in, say, the "Investments held at cost" as shown in either of the Statements of Financial Position. The details of these you will find within the notes to the question after the two Statements of Financial Position and the Statement of Income