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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA SBR Exams › Consolidated Cash Flow Doubts
Dear Sir,
In calculating NCI movements for cash flow purposes, why do we take total comprehensive income into consideration, where as for retained earnings of the parent, we only consider the net profit?
Secondly, in cash flow preparatory question of the bpp revision kit, parent acquired subsidiary for $5m, paid with $1m cash and $1,5m $1shares. In share capital they took $1.5m as share capital issued due to subsidiary and in share premium, they took (5-1-1.5) as the premium because of the acquisition of the subsidiary….could you kindly explain this?
Movement on NCI will be total gains, whether in profit or OCI
Movement on RE is profit only
When preparing CF:
b/d SC + SP
plus
Share issue SC + SP – share issue recorded at market price on date of issue
equals
c/d SC + SP
Don’t ever split up SC and SP – look at the two together.
Thank you so much!!!
My pleasure