This question encompasses everything covered in the module and is far more than would be

asked in a single exam question. Remember, increases in this example could be decreases in
another (and vice versa), and also not always the same information is given – for example, in
this question you are given sales proceeds for PPE disposals, in another it could be profit on
disposal instead.

Omnium Ltd had the following summarised statements of financial position as at 31

December 20X2 and 20X1.
20X2 20X1
Note €’000 €’000
Non-current Assets
PPE less depreciation 1 4,314 4,107
Investment properties 2 180 280
Intangible assets 3 2,250 1,850
6,744 6,237
Current Assets
Inventories 1,193 1,414
Receivables and prepayments 1,218 915
Bank 0 470
2,411 2,799
Current Liabilities
Bank loans and overdrafts 158 0
Trade payables 362 321
5% Debentures (20X0-20X9) 4 800 800
Other creditors 5 225 246
1,545 1,367
Non-Current Liabilities
5% Debentures (20X0-20X9) 4 2,400 3,200
Provisions 170 110
Deferred government grants 6 50 45
2,620 3,355

Net Assets 4,990 4,314

Capital and Reserves

Called up share capital €0.25 ord shares 7 200 100
Share premium 7 2,162 1,000
Special reserve 8 246 164
Revaluation reserve 350 230
Retained Earnings 2,032 2,820
Total Capital and Reserves 4,990 4,314

Omnium – page 1
Note 1
The notes to the financial statements show the following with respect to Plant, Property and
Equipment:
€’000
Cost/Valuation
Balance 1 January 20X2 5,340
Revaluation 120
Additions 798
Disposals (156)
Cost 31 December 20X2 6,102
Accumulated depreciation
Balance 1 January 20X2 1,233
Charge for year 628
Disposals (73)
Balance 31 December 20X2 1,788
Net book value 4,314

Disposals during the year realised €75,000.

Note 2
Investment properties were sold during the year for €160,000. There were no purchases of
investment properties. The company adopts the Fair Value Model as permitted under IAS 40.
An amount of €45,000 was credited in the Income Statement, being the impact of the
restatement of investment properties at 31 December 20X2.

Note 3
Intangible assets relates solely to capitalised/deferred development expenditure. Amortisation
of previously capitalised development expenditure of €35,000 was charged to profit and loss,
and a further €30,000 was written off, in the year. There were no disposals or other write-
downs in the year.

Note 4
The debentures originally totalled €8m are due to be repaid over the 10 year period ending in
20X9. The terms of the loan require repayment in equal annual instalments on 1 October,
together with interest accrued to that point. The year-end accrual was correctly booked to
P&L but mistakenly booked to receivables.

Omnium – page 2
Note 5
Other creditors comprised: 20X2 20X1
€’000 €’000
Corporation Tax for year 103 96
Dividends for year 120 100
Overdraft interest 2 0
Debenture interest 0 50
The 20X1 accrued dividends and corporation tax were paid in full during 20X2. A further
interim dividend for 20X2 of €55,000 was paid on 15 July 20X2.

Note 6
Government grants of €17,000 were released to the Income Statement during the year.

Note 7
During the year 400,000 ordinary shares of 25c each were issued at a premium of €3.00 per
share. Issue costs were debited against share premium.

Note 8
A transfer of €82,000 from retained earnings to the special reserve was made during the year.

Note 9
Interest debited to P&L on the bank overdraft for the year amounted to €5,000.

Required:
Prepare a statement of cash flows for Omnium Ltd for the year ending 31 December 20X2 in
accordance with IAS 7 Statement of Cash Flows.

Omnium – page 3