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    Consolidated Statement of Cash Flows 2024

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    Nora Arifahsya
    1. The consolidated statement of cash flows reports cash inflows and outflows under three activities: operating, investing, and financing. 2. Operating activities include all cash flows from the company's regular business operations that are not classified as investing or financing activities. The direct and indirect methods can be used to report operating cash flows. 3. Investing activities include cash flows from the purchase and sale of property, plant, and equipment as well as other long-term investments. Financing activities include cash flows that alter the capital structure of the company, such as issuing shares or taking on debt. 4. Acquisitions and disposals of subsidiaries require adjustments to accounts like goodwill, non-

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    Consolidated Statement of Cash Flows 2024

    Uploaded by

    Nora Arifahsya
    57 views1 page
    1. The consolidated statement of cash flows reports cash inflows and outflows under three activities: operating, investing, and financing. 2. Operating activities include all cash flows from the company's regular business operations that are not classified as investing or financing activities. The direct and indirect methods can be used to report operating cash flows. 3. Investing activities include cash flows from the purchase and sale of property, plant, and equipment as well as other long-term investments. Financing activities include cash flows that alter the capital structure of the company, such as issuing shares or taking on debt. 4. Acquisitions and disposals of subsidiaries require adjustments to accounts like goodwill, non-

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    1. The consolidated statement of cash flows reports cash inflows and outflows under three activities: operating, investing, and financing. 2. Operating activities include all cash flows from the company's regular business operations that are not classified as investing or financing activities. The direct and indirect methods can be used to report operating cash flows. 3. Investing activities include cash flows from the purchase and sale of property, plant, and equipment as well as other long-term investments. Financing activities include cash flows that alter the capital structure of the company, such as issuing shares or taking on debt. 4. Acquisitions and disposals of subsidiaries require adjustments to accounts like goodwill, non-

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    57 views1 page

    Consolidated Statement of Cash Flows 2024

    Uploaded by

    Nora Arifahsya
    1. The consolidated statement of cash flows reports cash inflows and outflows under three activities: operating, investing, and financing. 2. Operating activities include all cash flows from the company's regular business operations that are not classified as investing or financing activities. The direct and indirect methods can be used to report operating cash flows. 3. Investing activities include cash flows from the purchase and sale of property, plant, and equipment as well as other long-term investments. Financing activities include cash flows that alter the capital structure of the company, such as issuing shares or taking on debt. 4. Acquisitions and disposals of subsidiaries require adjustments to accounts like goodwill, non-

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    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 1

    Consolidated Statement of Cash Flows

    Review

    1. Definition of cash and cash equivalent


    2. Cash inflow and (outflow)
    3. 3 activities-operating, investing, financing
    3.1 Financing-how cash is raised (issue shares, debenture, bank borrowings)
    3.2 Investing-how cash is used (buy/sell PPE and investment including in sub and AC)
    3.3 Operating- others not covered by above 2 activities
    4. Direct and indirect method for operating activities only
    4.1 Direct method-cash received from customer, cash paid to supplier and staff…
    4.2 Indirect method-PBT -/+ adjustment for non-cash items like depreciation, impairment…
    5. Last 3 rows-net changes in C&CE + beginning balance = ending balance
    6. Involved opening of T accounts to get the hidden figures, notably:
    6.1 PPE
    6.2 Inv in Sub
    6.3 Inv in AC
    6.4 NCI
    6.5 Goodwill
    6.6 RE
    6.7 TR
    6.8 TP
    6.9 Inventory
    7. Acquisition vs Disposal of sub/AC
    8. 4 sample questions to discuss:
    8.1 Indirect method + acquisition of sub
    8.2 Indirect method + disposal of sub
    8.3 Direct method + acquisition of sub
    8.4 Direct method + disposal of sub

    Acquisition of sub Disposal of sub


    Calculate goodwill Calculate gain/loss on disposal
    CT 120 (CT in cash: investing-outflow) Proceeds (investing-cash inflow)
    (CT OSC: Cr OSC) +) FV of shares retained (no entries)
    +) NCI 20 (Cr NCI) -) FVNA x %original in sub (Cr assets, Dt Liabilities)
    -) FVNA 100 (Dt asset accounts, Cr Liabilities) -) Remaining goodwill (update goodwill account)
    Goodwill 40 (dt goodwill account) Gain/loss (operating)
    Update goodwill account Ensure goodwill account is zero
    Goodwill NCI
    b/d Impairment Dividend b/d
    Sub 40 c/d FVNA x %NCI Profit attributable
    c/d

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