PRACTICE KIT

CFAP 1: ADVANCED ACCOUNTING AND FINANCIAL REPORTING

CHAPTER 20: CONSOLIDATION CASH FLOWS

Workings
Rs.000
Property, plant and equipment 315
Inventories 139
Receivables 85
Cash at bank and in hand 3
Payables (68)
474
Goodwill 24
498
Satisfied by:
152
Shares allotted
Cash 346
498
Workings
(1) Proceeds from sale of property, plant and equipment
Rs.000
Cost of assets sold
429
Accumulated depreciation (255)
Loss on sale (18)
Proceeds 156

(2) Dividends received from associate

Interest in associate
Rs.000 Rs.000
Balance b/d 1,920 Dividends received from 93
Share of associates' profit Associates
after tax 139 Balance c/d 1,966
2,059 2,059

(3) Taxation
Interest in associate
Rs.000 Rs.000
Cash paid 2,400 Balance b/d 2,400
Balance c/d 2,950 Statement of profit or loss 2,950
5,350 5,350

7. Vitz Limited (Disposal + Acquisition of Foreign Operation)

Consolidated statement of cash flows for the year ended 30 June 2018
Rs. in million
Cash flow from operating activities
Profit (W-5)817.2+(W-6)222.8 1,040
Adjustments for:
Share of associate profit (W-3) (160–12) (148)
Gain on disposal of subsidiary SL (1,600–1,250–200) (150)
Gain on disposal of property, plant & equipment (350+230)–(170+250) (160)
Unwinding of interest on deferred consideration [189(W-7)×8%] 15
Exchange loss on deferred consideration [223–(189+15)] 19
Depreciation 480

From the desk of Hassnain R. Badami, ACA

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