Key Topics: Cashflows, financial instruments

Standards covered: IAS 7 statement of cashflows, IAS 32 financial instruments: presentation

Description: In this requirement you are expected to use the pre-populated spreadsheet and prepare revised consolidated cashflows for operating and investing activities. As part of this you need to consider the impact from the scenario on working capital adjustments, the acquisition of some PPE during the year, goodwill as well as some tax implications. Following on from this, in this requirement you are expected to explain all of the adjustments set out in 5.1. There are a total of five different adjustments to work through discussing whether the overall impact is a cash inflow or outflow, which section of the cashflow is impacted (operating or investing activities) and explain the adjustment in detail. The scenario sets out different financial instruments and you are expected to advise on how they should be treated in the consolidated statement of cashflows. As part of this you need to consider an overdraft, acquired debentures, issuing of bonds and a bank loan.