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Consolidated Cash Flow Doubts

AAvery5y ago
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?
stephenwidbergstephenwidbergTutor5y ago#1
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.
AAvery5y ago#2
Thank you so much!!!
stephenwidbergstephenwidbergTutor5y ago#3
My pleasure
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