PRACTICE KIT

CFAP 1: ADVANCED ACCOUNTING AND FINANCIAL REPORTING

CHAPTER 20: CONSOLIDATION CASH FLOWS

(3) Taxation on profits on ordinary activities Rs.000 Rs.000

Tax on income at 30% 600 90

Deferred tax 150 35
Under provision in respect of previous years 50 -
800 125

(4) Foreign exchange differences Rs.000 Rs.000

Gains arising on re- 700 400
translation
The exchange rate gain relates to the translation of an 80% owned overseas
subsidiary, Louise, under the closing rate method. The gain comprises:
Non-current assets 424
Inventories 117
Receivables 339
Cash 53
Trade payables (58)
875
Attributable to NCI (175)
Attributable to owners of parent company 700

(5) During the year non-current assets additions of Rs. 700,000 were acquired under finance
leases. Payments on finance leases are made in arrears. The net book value of noncurrent
assets disposed of was Rs. 720,000, With sale proceeds of Rs.810,000.

Required
(a) Prepare the group statement of cash flows of Bishop in accordance with IAS 7 together with any required
notes for the year ended 31 December 20X2.
(b) Explain why external users of financial statements benefit from receiving a statement of cash flows.

[ICAP CFAP-01 Practice Kit]

6. The Grape Group (Acquisition)
The draft statements of financial position and statement of profit or loss of the Grape Group at 31 March
Year 4 and 31 March Year 3 are as follows:

Notes Year 4 Year 3

Rs.000 Rs.000
Non-current assets
Intangible assets 24 -
Property, plant and equipment (1) 13,515 12,990
Investments – associated undertakings 1,966 1,920
15,505 14,910

Current assets
Inventory 11,657 10,530
Receivables 7,209 6,936

From the desk of Hassnain R. Badami, ACA

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