GROUP STATEMENT OF CASH FLOWS WITH A DISPOSAL

Ccaroline7y ago

Good day,I need help with understanding why the fair values of working capital items(inventory, recievables and payables) of a subsidiary being disposed during the reporting year must be added when calculating the movements to be posted to the statement of cash flows.please help

P2-D2Tutor7y ago#1

Hi, The assets/liabilities of the subsidiary must be at fair value within the group accounts, so if the fair value is higher than the carrying value then we must add the fair value uplift to the carrying value of the asset. Thanks

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