Document ID: chunk:federal_register_of_legislation:F2024C00050:body:0:p16
Version: federal_register_of_legislation:F2024C00050
Segment Type: other
Provision Reference: 
Character Range: 39680–44057

Purpose Financial Statements – Simplified Disclosures for For-Profit and Not-for-Profit Tier 2 Entities.

Illustrative examples
These illustrative examples accompany, but are not part of, AASB 107.

A  Statement of cash flows for an entity other than a financial institution
1 The examples show only current period amounts. Corresponding amounts for the preceding period are required to be presented in accordance with AASB 101 Presentation of Financial Statements.
2 Information from the statement of comprehensive income and statement of financial position is provided to show how the statements of cash flows under the direct method and indirect method have been derived. Neither the statement of comprehensive income nor the statement of financial position 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 and right-of-use assets relating to property, plant and equipment with an aggregate cost of 1,250, of which 900 related to right-of-use assets. 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 statement of comprehensive income for the period ended 20X2(a)
Sales                                                                                                   30,650
Cost of sales                                                                                           (26,000)
Gross profit                                                                                            4,650
Depreciation                                                                                            (450)
Administrative and selling expenses                                                                     (910)
Interest expense                                                                                        (400)
Investment income                                                                                       500
Foreign exchange loss                                                                                   (40)
Profit before taxation                                                                                  3,350
Taxes on income                                                                                         (300)
Profit                                                                                                  3,050
(a) The entity did not recognise any components of other comprehensive income in the period ended 20X2

Consolidated statement of financial position as at end of 20X2
                                                                            20X2                  20X1
Assets
Cash and cash equivalents                                                   230                   160
Accounts receivable                                                         1,900                 1,200
Inventory                                                                   1,000                 1,950
Portfolio investments                                                       2,500                 2,500
Property, plant and equipment at cost                           3,730                 1,910
Accumulated depreciation