CH16 group SCF Flashcards
CSCF - divs paid to the NCI working
Cash received from associate - what do you do?
In CSPL, we will have included our share of the associate’s profit. It’s not a real cash flow, so reverse out in the reconciliation. Replace with the real cash inflow from that associate (divs received - shown under investing activities)
Acquisition of associates: payments of CASH to acquire associates should be classified as …?
Cash flows from INVESTING activities
What is the primary aim of the consolidated statement of cash flows?
To show the cash flows of the group with third parties.
How is the preparation of the group statement of cash flows similar to that of an individual entity?
Information from the statement of financial position and statement of profit or loss is converted into cash flow information.
What additional issues must be considered in the preparation of the group statement of cash flows?
Cash flows to the non-controlling interest, cash received from associates, acquisitions/disposals of subsidiaries, acquisitions of associates.
How are dividends paid to the non-controlling interest classified in the cash flow statement?
As a cash outflow under ‘Cash flows from financing activities’.
Fill in the blank: The non-controlling interest represents a _______.
[third party]
What is required in the notes to the statement of cash flows regarding acquisitions and disposals of subsidiaries?
Disclosure in aggregate of:
* Total purchase price/disposal consideration
* Portion of purchase price/disposal consideration discharged by cash and cash equivalents
* Amount of cash and cash equivalents in the subsidiary acquired or disposed of
* Amount of assets and liabilities other than cash and cash equivalents in the subsidiary acquired or disposed of, summarised by major category.
This ensures transparency and provides stakeholders with a clear understanding of the financial impacts of such transactions.
What should be disclosed as part of the total purchase price/disposal consideration regarding acquisitions and disposals of subsidiaries?
Total purchase price/disposal consideration
This figure reflects the overall financial commitment involved in acquiring or disposing of a subsidiary.
What portion of the purchase price/disposal consideration must be disclosed regarding acquisitions and disposals of subsidiaries?
Portion discharged by means of cash and cash equivalents
This indicates how much of the transaction was settled through immediate cash resources.
What amount must be disclosed regarding cash in the subsidiary regarding acquisitions and disposals of subsidiaries?
Amount of cash and cash equivalents in the subsidiary acquired or disposed of
This provides insight into the liquidity position of the subsidiary at the time of acquisition or disposal.
What types of assets and liabilities must be summarized in the disclosure regarding acquisitions and disposals of subsidiaries?
Amount of assets and liabilities other than cash and cash equivalents, summarised by major category
This allows for a clearer picture of the subsidiary’s financial health beyond just cash resources.
