Presentation of Cashflow statement for "held for sales" entities

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sowrudy
Posts: 69
Joined: 22 Feb 2022, 03:26

Presentation of Cashflow statement for "held for sales" entities

Post by sowrudy »

Hi all accountant brothers and sisters

Thi is In line with IFRS 5 (entities held for sales). So when preparing consolidated cash flow, I understand that we need to work out the cashflow for those entities who are held for sales (HFS) too (separate cashflow statement) on top of the main group's cash flow.
Just say i already have the separate CS for those HFS and CS for main group. My question is, do we disclose those HFS cashflow separately underneath the consolidated cashflow statement, or we insert them line by line into the group CS report.

Below is the options I wonder which one to use.

OPTION 1...............

>>>>>Group cashflow statement<<<<<
Group Cashflow from operation 50
Group Cashflow from investing -50
Group Cashflow from Financing -100
Group Cash 100

>>>>HFS cashflow statement<<<<<<
HFS Cashflow from operation 5
HFS Cashflow from investing -5
HFS Cashflow from Financing -10
HFS Cash 10


OPTION 2...............

>>>>>Group cashflow statement<<<<<
Group Cashflow from operation 50
HFS Cashflow from operation 5
Group Cashflow from investing -50
HFS Cashflow from investing -5
Group Cashflow from Financing -100
HFS Cashflow from Financing -10
Group Cash 100
HFS Cash 10



OPTION 3................

>>>>>Group cashflow statement<<<<<
Group Cashflow from operation 50
Group Cashflow from investing -50
Group Cashflow from Financing -100
Group Cash 100

Exclude HFS cashflow from the face of group cashflow. But present them in the note/commentary.

From the note/ccommentary:
>>>>HFS cashflow statement<<<<<<
HFS Cashflow from operation 5
HFS Cashflow from investing -5
HFS Cashflow from Financing -10
HFS Cash 10
Leo
Posts: 908
Joined: 05 Apr 2020, 22:31

Re: Presentation of Cashflow statement for "held for sales" entities

Post by Leo »

You must present everything in the primary cash flow statement, and a aggregated cash flow statement in the notes for the discontinued activities.
sowrudy
Posts: 69
Joined: 22 Feb 2022, 03:26

Re: Presentation of Cashflow statement for "held for sales" entities

Post by sowrudy »

Hi Leo, if I present it on the main consolidated CS, that means, it will look more like Option 2?
Leo
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Joined: 05 Apr 2020, 22:31

Re: Presentation of Cashflow statement for "held for sales" entities

Post by Leo »

But you don't need to present cash flow generated from discontinued activities in separate lines within the primary cash flow statement.
sowrudy
Posts: 69
Joined: 22 Feb 2022, 03:26

Re: Presentation of Cashflow statement for "held for sales" entities

Post by sowrudy »

Leo wrote: 08 Jun 2022, 12:23 But you don't need to present cash flow generated from discontinued activities in separate lines within the primary cash flow statement.
That would be like Option 1 then? Just another mini cashflow statement underneath the group cashflow?
Leo
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Joined: 05 Apr 2020, 22:31

Re: Presentation of Cashflow statement for "held for sales" entities

Post by Leo »

yes, but mini cash flow should be presented in the notes related to discontinues activities.

besides, your group cash flow will be 100 or 110 ? it's not very clear

for me it should be :

>>>>>Group cashflow statement<<<<< primary statement
Group Cashflow from operation 55
Group Cashflow from investing -55
Group Cashflow from Financing -110
Group Cash -110



>>>>HFS cashflow statement<<<<<< Notes
HFS Cashflow from operation 5
HFS Cashflow from investing -5
HFS Cashflow from Financing -10
HFS Cash -10
sowrudy
Posts: 69
Joined: 22 Feb 2022, 03:26

Re: Presentation of Cashflow statement for "held for sales" entities

Post by sowrudy »

Thanks Leo. So in other words.
The movement of CS (in the main report) is NET including Group And HFS entities.
But when it comes to consol. BS and P&L, we separate them into separate line items for HFS.
Leo
Posts: 908
Joined: 05 Apr 2020, 22:31

Re: Presentation of Cashflow statement for "held for sales" entities

Post by Leo »

Yes. When it comes to P&L, only if it's a whole business segment or important activities.
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Marek Muc
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Re: Presentation of Cashflow statement for "held for sales" entities

Post by Marek Muc »

make sure that you distinguish assets held for sale from discontinued operations, they are not the same thing:

https://ifrscommunity.com/knowledge-bas ... -for-sale/

https://ifrscommunity.com/knowledge-bas ... perations/
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