SBR

1 – Acquisition of Natural
On 1 May 20X5, the Hessian group acquired 70% of the shares in Natural. Consideration for the
share purchase was in two forms:
? cash of $80 million
? an intangible asset with a fair value of $6 million and a carrying amount of
$4 million.
Hessian measured the non-controlling interest in Natural at its fair value of $40 million at the
acquisition date. The fair value of Natural’s identifiable net assets at the acquisition date was
$110 million. This fair value included the following:
$m
Cash and cash equivalents 9
Inventories 15
Trade and other payables 7
Goodwill impairments have been recorded in the year, but do not relate to Natural

Briefly explain how the pension scheme and the acquisition of the shares in
Natural impact on the consolidated statement of cash flows. (4 marks)
Please can someone help me understand how the shares impact the cashflows