Page 266 - F3 -FA Integrated Workbook STUDENT 2018-19

Chapter 19

Example 1 cont.

Statement of cash flows

The following information is relevant to the financial statements of Spring Co
for the year ended 30 June 20X5:

(a) Spring Co disposed of several items of plant and equipment during the
year. The carrying amount of the items disposed of was $2,500,000.

(b) Spring Co revalued its land and buildings during the year.

(c) Spring Co charged depreciation on its property plant and equipment
during the year of $3,500,000.

(d) Spring Co estimated that the income tax liability arising on the profit for
the year was $3,750,000.

Required:

Based upon the available information, prepare a statement of cash flows
using the indirect method for Spring Co for the year ended 30 June 20X5
in accordance with the requirements of IAS 7 Statement of Cash Flows.

260