Document ID: chunk:federal_register_of_legislation:F2024C00050:body:0:p18
Version: federal_register_of_legislation:F2024C00050
Segment Type: other
Provision Reference: 
Character Range: 49452–53358

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 X. The fair values of assets acquired and liabilities assumed were as follows:

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

B. Property, plant and equipment
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.

C. Cash and cash equivalents
Cash and cash equivalents consist of cash on hand and balances with banks, and investments in money market instruments. Cash and cash equivalents included in the statement of cash flows comprise the following amounts in the statement of financial position:

                                                  20X2     20X1
Cash on hand and balances with banks              40       25
Short-term investments                            190      135
Cash and cash equivalents as previously reported  230      160
Effect of exchange rate changes                   –        (40)
Cash and cash equivalents as restated             230      120

Cash and cash equivalents at the end of the period include deposits with banks of 100 held by a subsidiary which are not freely remissible to the holding company because of currency exchange restrictions.
The Group has undrawn borrowing facilities of 2,000 of which 700 may be used only for future expansion.

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

E. Reconciliation of liabilities arising from financing activities
                      20X1      Cash flows     Non-cash changes     20X2
                                               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

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:

Revenues excluding investment income             30,650
Operating expense excluding depreciation         (26,910)

Operating profit before working capital changes               3,740

B  Statement of cash flows for a financial institution
1 The example shows only current period amounts. Comparative amounts for the preceding period are required to be presented in accordance with AASB 101 Presentation of Financial Statements.
2 The example is presented