Dec 2013 Q1_Angel cashflow

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May 3, 2018 at 8:22 am #449909
sss111
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Refering to note (iii) why don’t we deduct the benefits paid by trustees of scheme $6m from operating activities in cashflow statement ? What is the treatment for this activity ?

Thank you in advance!
May 4, 2018 at 9:48 pm #450135
P2-D2
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Hi,

The benefits paid out have no net cash effect. To pay the benefits the assets are liquidated, giving us a cash receipt but then this is paid out and reduces the liability. The inflow and outflow both net off to zero, hence nothing is seen in the SCF.

Thanks
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