Consolidated Cash Flow Statement

AS 4388 views 2 replies

Dear All,

Can anybody help me in following querry:

Please clear how the ConsolidatedCash Flow Statement would be prepered in case of Consolidated Financial Statements.....

1. Whether the Minority Interest should be eliminated in CBS and only Parents share in assets and liabilitie would be taken?????

2. Profits from Parents should be taken only and Minority should be ignored in calculating cash from operating activities?????

In summary, please clear me the detailed treatment of Minority Interest while preparing the Consolidated Cash Flow Statement????

Please reply immediately as it is urgent..

With Regards

Sanjeev Kumar

Manager- Accounts/Tax/Finance

 

 

Replies (2)

Dear Sanjeev,

"Minority Interest" is calculated on for the purposes of Consolidated Balance sheet..

It has nothing to do with Cash Flows or Cash Flow statement for that matter..

For preparing consolidated cash flows "THE TRANSANCTIONS BETWEEN HOLDING & SUBSIDARY CO'S HAS TO BE ELIMINATED REST PROCEDURE IS SAME"

Simple way would be to prepare Cash flow statements of Holding as well as subsidary co's independently and then simply do the horizontol summation after excluding the inter company transanctions.


CCI Pro

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