Document ID: chunk:federal_register_of_legislation:F2024L00708:body:0:p100
Version: federal_register_of_legislation:F2024L00708
Segment Type: other
Provision Reference: 
Character Range: 271837–278131

cash flows (paragraph 18(b))
                                                                                                                         20X2
Cash flows from operating activities
Operating profit                                              3,290
Profit before taxation                                        3,350
Adjustments for:
                                                              Depreciation                             350450
                                                              Amortisation                             100
                                                              Foreign exchange loss                    40
                                                              Investment income                        (500)
                                                              Interest expense                         400
Operating profit before depreciation and amortisation         3,740
                                                              Increase in trade and other receivables  (500)
                                                              Decrease in inventories                  1,050
                                                              Decrease in trade payables               (1,740)
Cash from operating activities before income taxes
Cash generated from operations                                2,550
Interest paid                                                 (270)
Income taxes paid                                             (900)
Net cash from operating activities                                                                              1,650
                                                                                                                1,380

Cash flows from investing activities
Acquisition of Subsidiarysubsidiary X, net of cash acquired
(Note A)                                                      (550)
Purchase of property, plant and equipment (Note B)            (350)
Proceeds from sale of equipment                               20
Interest received                                             200
Dividends received                                            200
Net cash used in investing activities                                                                           (480)

Cash flows from financing activities
Proceeds from issue of share capital                          250
Proceeds from long-term borrowings                            250
Payment of lease liabilities                                  (90)
Interest paid                                                 (270)
Dividends paid(a)                                             (1,200)
Net cash used in financing activities                                                                           (1,060)
                                                                                                                (790)

Net increase in cash and cash equivalents                                                                       110
Cash and cash equivalents at beginning of period (Note C)                                                       120
Cash and cash equivalents at end of period (Note C)                                                             230
(a) This could also be shown as an operating cash flow.

Notes to the statement of cash flows (direct method and indirect
method)

A. Obtaining control of subsidiary
During the period the Group obtained control of Subsidiary subsidiary X. The fair values of assets acquired and liabilities assumed were as follows:

Cash                                              40
Inventories                                       100
Trade and other Accounts receivables              100
Property, plant and equipment                     650
Trade payables                                    (100)
Long-term debt                                    (200)
Total purchase price paid in cash                 590
Less: Cash of Subsidiary subsidiary X acquired    (40)
Cash paid to obtain control net of cash acquired  550

 ...

D. Segment information
                                        Segment A  Segment B   Total
Cash flows from:
                  Operating activities             1,720              (70)           1,650
                                                   1,520              (140)          1,380
                  Investing activities             (640)              160            (480)
                  Financing activities             (770)(570)         (290)(220)     (1,060)(790)
                                                   310                (200)          110

E. Reconciliation of liabilities arising from financing activities
                      20X1      Cash flows     Non-cash changes                20X2
                                               Interest expenses  Acquisition        New leases
Long-term borrowings  1,040     250            –                               200               –       1,490
Lease liabilities     –         (90)           –                               –                 900     810
Long-term debt        1,040     160            –                               200               900     2,300
Interest payable      100       (270)          400                             –                 –       230
                      1,140     (110)          400                             200               900     2,530

Alternative presentation (indirect method)
As an alternative, in an indirect method statement of cash flows, operating profit before working capital changes is sometimes presented as follows:

Sales Revenues excluding investment income                                            30,650
Cost of sales                                                                         (26,000)
Selling expenses                                                                      (600)
General and administrative expenses                                                   (310)
Operating expense excluding depreciation                                              (26,910)

Operating profit before depreciation and amortisation before working capital changes               3,740

B  Statement of cash flows for an entity that invests in