This document provides financial information for the Bishop group and instructions to prepare the group statement of cash flows and explain the benefits of the statement of cash flows for external users. It includes profit and loss information, taxation details, foreign exchange differences from a subsidiary, and notes on non-current asset additions and disposals. The group must prepare a statement of cash flows for Bishop in accordance with IAS 7 and include any required notes for the year ended December 31, 20X2. It also asks to explain why external users benefit from receiving a statement of cash flows.
This document provides financial information for the Bishop group and instructions to prepare the group statement of cash flows and explain the benefits of the statement of cash flows for external users. It includes profit and loss information, taxation details, foreign exchange differences from a subsidiary, and notes on non-current asset additions and disposals. The group must prepare a statement of cash flows for Bishop in accordance with IAS 7 and include any required notes for the year ended December 31, 20X2. It also asks to explain why external users benefit from receiving a statement of cash flows.
This document provides financial information for the Bishop group and instructions to prepare the group statement of cash flows and explain the benefits of the statement of cash flows for external users. It includes profit and loss information, taxation details, foreign exchange differences from a subsidiary, and notes on non-current asset additions and disposals. The group must prepare a statement of cash flows for Bishop in accordance with IAS 7 and include any required notes for the year ended December 31, 20X2. It also asks to explain why external users benefit from receiving a statement of cash flows.
This document provides financial information for the Bishop group and instructions to prepare the group statement of cash flows and explain the benefits of the statement of cash flows for external users. It includes profit and loss information, taxation details, foreign exchange differences from a subsidiary, and notes on non-current asset additions and disposals. The group must prepare a statement of cash flows for Bishop in accordance with IAS 7 and include any required notes for the year ended December 31, 20X2. It also asks to explain why external users benefit from receiving a statement of cash flows.
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:
