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Financial Reporting Standard 107


Appendix A
Cash flow statement for an entity other than
a financial institution

This appendix accompanies, but is not part of, FRS 107.

1.

The examples show only current period amounts. Corresponding amounts for the preceding period are required to be presented in accordance with FRS 101 Presentation of Financial Statements.

2.

Information from the income statement and balance sheet is provided to show how the statements of cash flows under the direct method and indirect method have been derived. Neither the income statement nor the balance sheet is presented in conformity with the disclosure and presentation requirements of other Standards.

3.

The following additional information is also relevant for the preparation of the statements of cash flows:

•

all of the shares of a subsidiary were acquired for 590. The fair values of assets acquired and liabilities assumed were as follows:
 
  Inventories
100
  Accounts receivable
100
  Cash
40
  Property, plant and equipment
650
  Trade payables
100
  Long-term debt
200


 
*

250 was raised from the issue of share capital and a further 250 was raised from long-term borrowings.
*

interest expense was 400, of which 170 was paid during the period. Also, 100 relating to interest expense of the prior period was paid during the period.
*

dividends paid were 1,200.
*

the liability for tax at the beginning and end of the period was 1,000 and 400 respectively. During the period, a further 200 tax was provided for. Withholding tax on dividends received amounted to 100.
*

during the period, the group acquired property, plant and equipment with an aggregate cost of 1,250 of which 900 was acquired by means of finance leases. Cash payments of 350 were made to purchase property, plant and equipment.
*

plant with original cost of 80 and accumulated depreciation of 60 was sold for 20.
*

accounts receivable as at the end of 20X2 include 100 of interest receivable.

 

 

Consolidated income statement for the period ended 20X2

Consolidated balance sheet as at end of 20X2

Direct method cash flow statement (paragraph 18(a))

Indirect method cash flow statement (paragraph 18(b))

Notes to the cash flow statement (direct method and indirect method)

 

 

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