PRACTICE KIT

CFAP 1: ADVANCED ACCOUNTING AND FINANCIAL REPORTING

CHAPTER 20: CONSOLIDATION CASH FLOWS

Exchange gain 700 700 175 875

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C/fwd 31 Dec 11,000 401 2,800 5,674 19,875 2,800 22,675
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Notes: NCI = non-controlling interest

Exchange gain = exchange gain on translation of subsidiary

Consolidated statement of financial position as at 31 December 20X2

20X2 20X1
Rs.000 Rs.000
Tangible assets 11,720 7,520
Investments 3,000 2,700
Current assets
Inventories 6,135 5,740
Receivables 5,720 4,380
Cash at bank and in hand 820 169
27,395 20,509
Equity and liabilities
Ordinary share capital 11,000 7,500
Share premium 401 77
Foreign currency translation 2,800 2,100
Retained earnings 5,674 4,905
Equity attributable to owners of parent 19,875 14,582
Non-controlling interest 2,800 2,500
Total equity 22,675 17,082
Current liabilities
Payables 1,420 1,760
Tax 700 167
Obligations under finance leases 110 50
Non- current liabilities
Loans 1,200 800
Obligations under finance leases 740 250
Provisions for liabilities and charges
Deferred tax 550 400
27,395 20,509

Notes to the accounts

(1) Operating profit is stated after charging Rs.000 Rs.000
Depreciation: Owned assets 960 840
Assets held under finance leases 240 120
1,200 960

(2) Finance costs Rs.000 Rs.000

Loan interest 120 80
Finance charge on finance leases 205 132
Exchange rate losses on long-term loans 25 18
350 230

From the desk of Hassnain R. Badami, ACA

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