CONSOLIDATED STATEMENT OF CASFLOW FOR THE YEAR ENDED 30TH JUNE 2006

Cash flows from operating activities

$M $M
profit before tax 690 W1 goodwill indamp and impairment loss
add finance cost 40 FV of purchase consid
less share associates profit -30 FV of NCI at acquisiti
add impairment loss 8 FV of net assets at ac
add dep exp for the year 60 goodwill
add sevice cost component 13
operating profit before working 781
add decease in stock 20 b/d 25
less increase in receivables -80 Addition 15
add increase in payables 141
cash generated from operations 862 40
contribution paid -7
interest paid -31
tax paid -190 no tax in oci 0 interest pa
net cash infloww from opeating activities 634

c/d
cashflows from investing activities
cash purchases of subsidiary -100
cash purchases for PPE -251
investmnet in river -400 tax paid
dividend received from associat 35
net cash outflow from investing activities -716 c/d

xashflow from financing activities

dividend paid -46 investment in river was includedb/d
cash proceeds from share issued 30 acquisition
cash proproceeds from loan rep 66 NCL
div paid to nci -58 Cash purch
net cash outflow of financing activities -8
NET DECREASE IN CASH AND CASH EQUIVA -90
opening cash and cash equivalent 140
closing cash and cash equivalent 50 tied b/d
share on as

dividend pa
c/d
SEP DEC 2020
acquisition of flour is step acquisition. This means it would be treated as if it is diposed and then acquired at fairvalue. The diff
$`000
cost 10000
share in post acquisition net ass 4800
carrying amount of associate as 14800

fair value of associate at 1 07 07 will be 15200

the diiference will get recognised in profit and loss which is 400

goodwill will be calculated at 1 07 07 the day control is gained . Goodwill is calculated as the difference of fair value of conside
ndamp and impairment loss
125
50
-160
15

Goodwill

impairment 8
c/d 32

Interest payable
31 b/d 45
PNL 36

50
81

tax payable
190 b/d 210
PNL 200
220
410
PPE
1005 dep exp 60
70 impairment 95
144
251 c/d 1315
1470

investment in associate
290 exchange l 5
20 dividend f 35
c/d 270
310

NCI
b/d 45
58 FV of NCI a 50
62 share of N 25
 120

acquired at fairvalue. The difference between carrying amount and fair value of associate at the date of step acquisition would be recogn

erence of fair value of consideration paid and non controlling interest and the fairvalue of the identifiable net assets at the date of acquisi
p acquisition would be recognised in pnl. As an associate this would be accounted as per equity accounting as at 1 07 07 as follows

et assets at the date of acquisition the consideration must include the original 40 % equity interst as well as the additional consideration
s at 1 07 07 as follows

he additional consideration