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, and the reconciliation of cash flows from operating activities to profit or loss, 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 Australian Accounting 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:

• 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 also 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 Statement of Comprehensive Income for the period ended 20X2(a)