Page 439 - Microsoft Word - 00 CIMA F1 Prelims STUDENT 2018.docx

Answers

Example 17.3

Cash spent on PPE = $76m

Property, plant and equipment
B/f 30 Depreciation 10

Consolidated on acquisition of 40 Disposal of sub 36
new sub

Additions of PPE – cash β 76 C/f 100

–––– ––––
146 146
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Alternative working (no T account)

$m

Opening PPE 30
Acquisition of sub 40
Depreciation (10)

Disposal of sub (36)

Additions of PPE - cash β 76
–––––
Closing investment in associate 100

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The cash paid on new additions of PPE will be held under 'cash flows from
investing activities' within the statement of cash flows.

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