May 2017 Q1
The following draft consolidated financial statements relates to the Baa Koomi Group plc.
The following information is relevant to Baa Koomi Group plc.
i) The Baa Koomi Group plc has two wholly owned subsidiaries. In addition, it acquired a 75% interest in Nyamema Ltd on 1 August 2015. It also holds a 40% interest in Babaa Ltd which it acquired several years ago. Goodwill has not become impaired.
ii) The following, recorded at fair values, refers to Nyamema Ltd at the date of acquisition.
iii) The consideration for the purchase of the shares of Nyamema Ltd comprised 44,000 ordinary shares of GH¢1 of Baa Koomi Group plc at a value of GH¢550,000 and a balance of GH¢28,000 was paid in cash.
iv) The taxation charge in the consolidated statement of profit or loss is made up of the following items:
v) The tangible non-current assets of the Baa Koomi Group plc comprise the following:
vi) Included in the additions to plant and machinery are items totaling GH¢1,700,000 acquired under finance leases. The plant and machinery disposal resulted in a profit of GH¢300,000. All lease rentals were paid on their due dates.
vii) Non-current liabilities include the following items:
There had been an issue of debentures on 1 August 2015. Their par value was GH¢3,000,000 but they were issued at a discount of GH¢100,000. The effective rate of interest was 7%.
Required:
Prepare a consolidated statement of cash flow for the Baa Koomi Group plc for the year ended 31 July 2016, in accordance with the requirements of IAS 7 Statements of Cash flow. (20 marks)
(Note: use the indirect method to present cash flows from operating activities.)