Statement of group cash flow

Example 4 – Group statement of cash flows
The following draft group financial statements relate to Dove, a public limited company.
Dove Group statement of financial position as at 31 December 2015
2015
$m
2014
$m
Assets:
Non-current assets
Property, plant and equipment 1,745 1,250
Goodwill 1,184 1,230
Investment in associate 200 190
3,129 2,670
Current assets:
Inventory 530 580
Receivables 456 390
Cash and cash equivalents 190 230
1,176 1,200
Total assets 4,305 3,870
Equity and liabilities:
Share capital 1,700 1,500
Retained earning 1,060 900
2,760 2,400
Non-controlling interest 575 540
3,335 2,940
Non-current liabilities
Long-term borrowings 300 200
Deferred tax 220 190
Current liabilities
Trade payable 300 430
Current tax payable 150 110
450 540
Total liabilities 970 930
Total equity and liabilities 4,305 3,870
Dove group statement of profit or loss for the year-ended 31 December 2015
$m
Revenue 1,765
Cost of sales (1,185)
Gross profit 580
Distribution costs (100)
Administrative expenses (90)
Profit before interest and tax 390
Finance costs (55)
Share of profit of associate 40
Profit before tax 375
Taxation (95)
Profit for the year 280
Dove group statement of changes in equity for the year-ended 31 December 2015
Equity shares Retained earnings NCI Total
$m $m $m $m
B/f 1,500 900 2,400 540 2,940
Issue of share capital 200 200 200
Dividends (65) (65) (20) (85)
Total comprehensive income for the year 225 225 55 280
Transfer to retained earnings
C/f 1,700 1,060 2,760 575 3,335
The following information relates to the financial statements of the Dove Group:
• On 1 June 2015, Dove acquired all of the share capital of Fred for $50 million. The fair value of the
identifiable net assets and liabilities at the date of acquisition that have been reflected in the year-end
balances of the Dove Group are as follows:
$m
Property, plant and equipment 13
Inventory 20
Receivables 15
Cash and cash equivalents 3
Payables (9)
42
Goodwill arising on this transaction was $8m.
• Dove owns 20% of an associate. The associate made a profit for the year of $200 million and paid a
dividend of $150 million.
• During the year Dove charged depreciation of $130 million on its property, plant and equipment. It sold
property, plant and equipment with a carrying value of $43million for $50 million

in the solution for this question, we r recording dividends paid to shareholders? Maybe I am mixing things up, but it was told in one of the lectures that we do not record dividends paid to parents.