Consolidated statement of cash flows - part 2

In this lesson

1. 0:00 Investment in associate dividend working
2. 0:43 Dividend paid to noncontrolling interest
3. 3:10 Example NCI dividend calculation
4. 5:14 Group environment impact on workings
5. 5:47 Non-current assets acquisition working
6. 9:12 Cash from operations adjustments
7. 12:49 Summary and key takeaways

About this lesson

This part focuses on two critical workings you'll encounter regularly: calculating dividends received from associates and dividends paid to noncontrolling interest shareholders. You'll also discover how acquisitions, non-current asset movements, and working capital changes operate differently in a group environment, and why exchange gains and other items require careful treatment in your cash flow analysis. The video walks you through detailed worked examples showing how to extract the dividend received from an associate by analysing the movement in the investment asset, and how to work out dividend payments to NCI shareholders by tracking changes in the noncontrolling interest liability. You'll see how new subsidiary acquisitions impact non-current assets and the NCI balance, and how to adjust operating cash flows for group-specific non-cash items like associate profit shares. Each example demonstrates that while some adjustments follow single-company principles, the group context introduces additional movements—acquisitions, exchange gains, and minority interests—that must be accounted for correctly. These techniques are essential for SBR and other advanced papers where consolidated statement of cash flows questions test your ability to work backwards from opening and closing balances to find missing figures. By mastering these workings, you'll build the confidence to tackle even complex group scenarios with clarity and accuracy.

Duration: 14m