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Chapter 24

Consolidated cash flows

3.1 Introduction

A consolidated statement of cash flows shows cash flows between the group and
third parties.

Cash outflows

Parent

Subsidiary

Cash inflows

It is prepared using the consolidated statement of financial position and the
consolidated statement of profit or loss. This means that intra-group transactions
have already been eliminated.

When producing a consolidated statement of cash flows, there are three extra
elements that need to be considered:

 changes in group structure

 non-controlling interests

 associates.

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