3-6int_2004_dec_q[1]

actual movement on property, plant and equipment in the period is as follows:
$m
Net book value at 30 November 2003
1,600
New subsidiary – addition
45
Other additions
(75)
Acquisitions and disposals (note ii)
(250)
Equity dividends paid including minority interest (note v)
(20)
––––––
Cash outflow before management of liquid
$m
1,720 (1,600) ––––––
120 (45) –––––– 75 ––––––
(v) The entries in the cash flow statement for dividends paid to/from the minority interest and the associated
The Association of Chartered Certified Accountants
This is a blank page. Question 1 begins on page 3.
2
4D–INTPA Paper 3.6INT
4D–INTAA Paper 3.6INT
Section A – This ONE question is compulsory and MUST be attempted
–––––
2395
Increase in inventory
(400)
Decrease in trade receivables
300
Decrease in trade payables
(500)
Increase in insurance claims provision
100
–––––
Net cash flow from operating activities
$m
Net profit before tax and extraordinary item
from income statement
2,385
Adjustments to operating activities for:
Investment income
(20)
Interest expense
30
Section A This ONE question is compulsory and MUST be answered
Section B THREE questions ONLY to be answered
Do not open this paper until instructed by the supervisor This question paper must not be removed from the examination hall
265
Disposals
(125)
Depreciation
(65)
––––––
Net book value at 30 November 2004
1,720
––––––
The disposal proceeds relating to property, plant and equipment were $80 million.
45
–––
(iv) The cash flow attributed to purchases of property, plant and equipment was calculated by reference to the
movement in the balance sheet values from 2003 to 2004 as adjusted for the purchase of the subsidiary. The
company are as follows:
Minority
Associated
Interest
Company
$m
$m
Balance at 30 November 2004 in group balance sheet
346
65
Balance at 30 November 2003 in group balance sheet
(ii) Beel had purchased a subsidiary company in the year. The figure in the cash flow statement for the acquisition
of the subsidiary comprises the following:
(80)
Dividends from associates (note v)
(10)
Interestபைடு நூலகம்paid
(150)
Interest received
110
––––
(40)
Taxation
(1,500)
Capital expenditure and financial investment (note iv)
1 AAP, a public limited company, is considering whether to invest in an overseas group, Beel. The current year’s cash flow statement of Beel does not conform with IFRS and is set out below. Beel’s presentation currency is the dollar.
(iii) Beel had issued a ten year zero dividend bond at a discount. The bond matured in the year and it had been
treated in the cash flow statement as follows:
Paper 3.6(INT)
Advanced Corporate Reporting
(International Stream)
PART 3 TUESDAY 14 DECEMBER 2004
QUESTION PAPER Time allowed 3 hours This paper is divided into two sections
4
4D–INTBA Paper 3.6INT
Cash flow statement entry Net book value at 30 November 2004 Net book value at 30 November 2003
less addition from subsidiary Net purchases of property, plant and equipment
There have been no sales of money market instruments in the year but there have been purchases of $6 million. Cash at bank at 30 November 2003 was $30 million and at 30 November 2004 was $44 million.
resources and financing
(80)
Management of liquid resources (note i)
(26)
Financing – issue of ordinary shares (note ii)
130
Financing – proceeds from long term borrowing (note ii)
1,895
–––––
3
[P.T.O.
4D–INTAA Paper 3.6INT
The following information is relevant to the group cash flow statement:
(i) The amount for the management of liquid resources has been derived from the following balance sheet amounts:
(25 marks)
5
[P.T.O.
4D–INTAPB Paper 3.6INT
4D–INTABA Paper 3.6INT
Section B – THREE questions ONLY to be attempted
2 The following balance sheets relate to A, B, C and D, all public limited companies, as at 30 November 2004.
35
Financing – payment of zero dividend bond (note iii)
(45)
––––
120
––––––
Increase in cash in the period
14
––––––
Analysis of net cash flow from operating activities
Required: