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
Presentation of Cashflow statement for "held for sales" entities
Re: Presentation of Cashflow statement for "held for sales" entities
You must present everything in the primary cash flow statement, and a aggregated cash flow statement in the notes for the discontinued activities.
Re: Presentation of Cashflow statement for "held for sales" entities
Hi Leo, if I present it on the main consolidated CS, that means, it will look more like Option 2?
Re: Presentation of Cashflow statement for "held for sales" entities
But you don't need to present cash flow generated from discontinued activities in separate lines within the primary cash flow statement.
Re: Presentation of Cashflow statement for "held for sales" entities
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
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
Re: Presentation of Cashflow statement for "held for sales" entities
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.
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.
Re: Presentation of Cashflow statement for "held for sales" entities
Yes. When it comes to P&L, only if it's a whole business segment or important activities.
Re: Presentation of Cashflow statement for "held for sales" entities
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/
https://ifrscommunity.com/knowledge-bas ... -for-sale/
https://ifrscommunity.com/knowledge-bas ... perations/