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consolidated cash flow

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA SBR Exams › consolidated cash flow

  • This topic has 1 reply, 2 voices, and was last updated 8 years ago by P2-D2.
Viewing 2 posts - 1 through 2 (of 2 total)
  • Author
    Posts
  • February 8, 2017 at 12:12 pm #371599
    neshnesh
    Member
    • Topics: 8
    • Replies: 4
    • ☆

    CSOFP at 31.12.x5
    x4(‘000) x5(‘000)
    NCA

    Goodwill 200 580
    CA
    Inventory 900 1200
    Receivables 600 900
    Bank 450 650
    Total Asset 5950 10570

    Share capital 2000 3200
    Profit/loss 1400 2280
    Share premium 500 1700
    Debenture 800 1000
    Payable 300 550
    Tax payable 180 320
    Dividend payable by H 200 320
    Dividend payable by S to NCI 20 30
    Dividend payable by SS to NCi – 20
    NCI in S 550 640
    NCI in SS – 510
    5950 10570

    CIS at 31.12.x5
    ‘000
    Sales 10000
    COS -6000
    GP 4000
    Expense -2220
    PBT 1780
    Tax -280
    PAT 1500

    NCI in S 120
    NCI in SS 180
    -300
    1200
    dividend paid -320
    880

    Additional point:
    Expense include impairment of goodwill, profit on disposal of nca and depreciation of RM410,000

    On 1.10.X5, parent acquired 80% of SS by issue share 800,000 o/share in Parent (Market Value Rm2 each) and cash payment of Rm400,000. The net asset of SS on 1.10.x5 were as follows

    ‘000
    NCA 1000
    Inventory 300
    Receivable 250
    Bank 350
    Payable (150)
    NCI (350)
    1400
    The group policy is to amortize goodwill over 5 years. S was acquired in X2
    During the year, nca of nbv RM750,000 were sold for RM850000

    I would like to ask how to calculate the dividend paid by S to NCI and dividend paid by SS to NCI in this question?

    Besides, The group policy is to amortize goodwill over 5 years. S was acquired in X2
    for the sentence above what does it useful because the cash flow is do for X5 so how do we know the impairment of goodwill is how much for S?

    February 12, 2017 at 8:51 pm #372121
    P2-D2
    Keymaster
    • Topics: 4
    • Replies: 7172
    • ☆☆☆☆☆

    Hi,

    To calculate the dividend paid to the NCI then you will use a T-account for each of S and SS. You will need to put in the opening and closing NCI balances, along with any NCI share of profits/OCI. Further adjustments would be made for and acquisition/disposal of subsidiaries during the year.

    Try it and see how you get on.

    Where is the question from as it isn’t really something that I’d expect in a P2 exam. Never have be had group SCF with a complex group and never would we have the amortisation of goodwill, as that isn’t allowed under IFRS.

    Thanks

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    Posts
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