Skip to main content
IFRS Academy

CERTYNEX IFRS ACADEMY

My account — Professional

Search the Academy

Home
My learning path
Exercises & quizzes
Cases
Workpapers
Exams
My progress

Workpapers

Workpaper template

WorkpaperIAS 7 — Statement of Cash FlowsL3 · L4

Group cash flows

2 missions7 sections to document50 min
Prepared by
AI-assisted draft
Reviewed by
Not reviewed — human review required
Status
Published

Objective of the workpaper

From the acquisition and disposal agreements, the balance sheets of the subsidiaries at the transaction date, the movements in equity-accounted investments and the exchange rates provided, determine the cash flows from acquiring and disposing of subsidiaries net of cash acquired or disposed of, classify changes in ownership without loss of control, determine the cash flows with associates, measure the exchange effect on the cash of a foreign subsidiary and prepare the disclosures on obtaining and losing control.

7 sections · 29 blocks · 4 calculations · 0 entries

  • IAS 7 §25
  • IAS 7 §26
  • IAS 7 §27
  • IAS 7 §37
  • IAS 7 §38
  • IAS 7 §39
  • IAS 7 §41
  • IAS 7 §42
  • IAS 7 §42A
  • IAS 7 §42B
  • IAS 7 §28
  • IAS 7 §40
  • IAS 7 §40A
  • IAS 7 §34A

Work this workpaper as a mission

Each case that uses this template opens in the mission workspace: data, analysis, calculation, entries, conclusion and review, with your progress saved.

2 instances from the cases: the calculations and entries below are run by the calculation engine.

File and entity
Acquisition of a subsidiary, disposal of another and purchase of non-controlling interests: group cash flows
Case tasks documented here
  • Analyse the group transactions of the period.
  • Compute the cash flow from acquiring Galmier.
  • Compute the cash flow from disposing of Malvoisine Ibérica.
  • Compute the dividends received from Fontanes.
  • Classify the transactions and identify the pitfalls of the consolidated statement.
  • Prepare the note on obtaining and losing control.
1

Inputs

Inputs

  • Group transactions of the period: companies, dates, percentages, consideration

    TextRequired

    ACQUISITION_OF_GALMIER_DISPOSAL_OF_IBERICA_NCI_PURCHASE_IN_SERVICES

  • Assets and liabilities other than cash of the subsidiaries acquired or disposed of, by major category

    Text

    PPE_INVENTORIES_RECEIVABLES_BORROWINGS_PAYABLES_PER_ACQUISITION_AND_DISPOSAL_NOTES

  • Total consideration for the acquisition

    Number

    4,200,000

  • Portion of the consideration paid in cash during the period

    Number

    3,000,000

  • Cash and cash equivalents of the subsidiary at the date control is obtained

    Number

    380,000

    Rule: the cash of the subsidiary at the date control is obtained is deducted from the cash price paid (para. 42); the portion of the consideration settled in shares is a non-cash transaction.

  • Total consideration for the disposal

    Number

    2,000,000

  • Portion of the consideration received in cash during the period

    Number

    1,800,000

  • Cash and cash equivalents of the subsidiary at the date control is lost

    Number

    260,000

  • Price paid for additional interests without change of control

    Number

    450,000

  • Equity-accounted investment at the beginning of the period

    Number

    1,250,000

  • Share of profit for the period

    Number

    210,000

    Case data (equity method, IAS 28 not mapped): the share of profit is not a receipt; only the dividends and investments exchanged are cash flows (para. 37 and 38).

  • Additional investments paid

    Number

    100,000

  • Impairment loss on the investment

    Number

  • Equity-accounted investment at the end of the period

    Number

    1,430,000

  • Foreign subsidiary's cash at the end of the period, translated at the closing rate

    Number

  • Foreign subsidiary's cash at the beginning of the period, translated at the opening rate

    Number

  • Foreign subsidiary's net cash inflows, translated at the rates at the dates of the cash flows

    Number

  • Foreign subsidiary's net cash outflows, translated at the rates at the dates of the cash flows

    Number

2

Supporting evidence

Evidence

  • Evidence obtained and referenced (category, document reference)

    EvidenceRequired

3

Analysis of the group transactions

Analysis

IAS 7 §25IAS 7 §26IAS 7 §27IAS 7 §37IAS 7 §38IAS 7 §39IAS 7 §41IAS 7 §42IAS 7 §42AIAS 7 §42B

  • Points reviewed

    ChecklistRequired

    • Obtaining and losing control: aggregate cash flows presented separately in investing
    • Amount paid or received net of cash acquired or disposed of
    • No offsetting of obtaining and losing control
    • Changes in ownership without loss of control: financing
    • Associates: only cash flows exchanged (dividends, investments, advances)
    • Cash flows of a foreign subsidiary at the rates at the dates of the flows (or an approximating average), never at the closing rate
    • Dividends received from an associate: investing outside para. 34B, classification given by the case for a para. 34B entity

  • Presentation of the purchase of interests without change of control

    Choice

    Financing

    Financing / Investing / Not applicable

    Rule: a purchase of additional interests in a subsidiary already controlled is a financing cash flow (para. 42A).

4

Group cash flows

Calculations

IAS 7 §42IAS 7 §37IAS 7 §28

  • Acquisition of subsidiaries, net of cash acquired (outflow)

    Calculation

    2,620,000

    Portion of the consideration paid in cash during the period ; − Cash and cash equivalents of the subsidiary at the date control is obtained

  • Disposal of subsidiaries, net of cash disposed of (inflow)

    Calculation

    1,540,000

    Portion of the consideration received in cash during the period ; − Cash and cash equivalents of the subsidiary at the date control is lost

  • Dividends received from the associate

    Calculation

    130,000

    Equity-accounted investment at the beginning of the period ; Share of profit for the period ; Additional investments paid ; − Equity-accounted investment at the end of the period ; − Impairment loss on the investment

  • Exchange effect on the foreign subsidiary's cash

    Calculation

    0

    Foreign subsidiary's cash at the end of the period, translated at the closing rate ; − Foreign subsidiary's cash at the beginning of the period, translated at the opening rate ; − Foreign subsidiary's net cash inflows, translated at the rates at the dates of the cash flows ; Foreign subsidiary's net cash outflows, translated at the rates at the dates of the cash flows

5

Disclosure on obtaining and losing control

Disclosure

IAS 7 §40IAS 7 §40AIAS 7 §41

  • Items of the note

    ChecklistRequired

    • Total consideration paid or received
    • Portion of the consideration consisting of cash
    • Cash of the subsidiaries acquired or disposed of
    • Other assets and liabilities by major category
    • Investment entity: exemption from para. 40(c) and (d) for subsidiaries at fair value
    • Separate lines, without offsetting

  • Draft note on acquisitions and disposals of subsidiaries

    Text

6

Conclusion

Conclusion

  • Group lines of the statement finalised and points submitted to the reviewer

    ConclusionRequired

7

Normative references

References

  • Paragraphs cited in this workpaper (verification status shown from the register)

    References

8

Checks and financial statement impact

  • Presentation of purchases of interests documentedPass
Assets
0
Liabilities
0
Profit or loss
0
OCI
0
Equity
0