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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA SBR Exams › Group Consolidated Cash Flow
Hi
I am currently looking at a past paper where it says there is a rights issue from the Subsidiary (60% owned , 40% NCI) and $5 million was received through a share issue.
My problem or lack of understanding here is the NCI element of this is shown in Financing Activities as $2 million which of course I understand but I cant see the $3 million anywhere for the Group? is this because it cancels out on consolidation? im just guessing here and feeling like an idiot so any help greatly appreciated!
Hi,
Yes, it is a tricky one (so don’t feel like and idiot!) as it is the subsidiary issuing the shares and not the parent. As the parent owns 60% of the subsidiary it will subscribe to its share (60%) of the share issue and as you say this amount is intra-group so is not a cash flow in to the group, so is not included within the group SCF.
Thanks