Page 8 - PowerPoint Presentation
P. 8
Overview
• If a consolidated set of financial statements is prepared for a
group of companies, it would include a consolidated
statement of cash flows.
• The cash flows would only be those that are external to the
group.
• The basic approach followed is that the consolidated
statement of cash flows is prepared from the consolidated
statement of financial position, the consolidated statement
of changes in equity and the consolidated statement of
profit or loss and other comprehensive income.
• By doing so the statement of cash flows is prepared for a
group as a single entry, as the intragroup transactions have
already been eliminated.
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