Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA SBR Exams › March/June 2016: Consolidated CashFlows
- This topic has 4 replies, 2 voices, and was last updated 7 years ago by Anonymous.
- AuthorPosts
- December 2, 2016 at 10:14 am #353116
In the First question, I have not quite understood the defined benefit working of the question. (note iv). I saw the answer but I am still confused about the whole working of that note especially the deferred tax part of note iv). Could you explain it to me please
December 2, 2016 at 11:49 am #353146Also, in the same question Note vii) Impairment of financial asset, I understand why $1 million impairment is added back to the operating profits.
But, what I don’t understand is why is that additional $7 million also added back to the operating profits when there was no entry made for it in the income statement in the first place? If the company adjusted that $7 million in the income statement, it would make sense to add it back, but here the company has not made any adjustments to it. So could you tell why they have added that extra $7 million as well?December 2, 2016 at 12:35 pm #353163Sorry for another question but this one is a small doubt of the same question.
Why is loss on disposal of subsidiary of $29m not added back to the operating profits?December 2, 2016 at 5:03 pm #353238AnonymousInactive- Topics: 0
- Replies: 22
- ☆
@ahmed9729 said:
Sorry for another question but this one is a small doubt of the same question.
Why is loss on disposal of subsidiary of $29m not added back to the operating profits?Because it was included into the loss from discontinued operation (below the profit before tax).
December 3, 2016 at 10:18 pm #353556AnonymousInactive- Topics: 0
- Replies: 22
- ☆
@ahmed9729 said:
Also, in the same question Note vii) Impairment of financial asset, I understand why $1 million impairment is added back to the operating profits.
But, what I don’t understand is why is that additional $7 million also added back to the operating profits when there was no entry made for it in the income statement in the first place? If the company adjusted that $7 million in the income statement, it would make sense to add it back, but here the company has not made any adjustments to it. So could you tell why they have added that extra $7 million as well?Initial profit in the PL was wrong so it got adjusted by removing 7 and then added back to adjust operating cashflows.
- AuthorPosts
- You must be logged in to reply to this topic.