Advanced Accounting (Canada) · Consolidated Cash Flow Statement

Two routes to a consolidated cash flow statement: (a) sum the parent's and subsidiaries' separate cash flow statements, or (b) analyze changes in non-cash accounts from the comparative consolidated balance sheets and income statement. Which is easier and why does the other route create extra work?

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More in Consolidated Cash Flow Statement

Intercompany dividends, loans, and interest are real cash movements between the parent and subsidiary as separate legal entities. If you leave them in the consolidated cash flow statement, what specifically goes wrong even though group net cash is unchanged?

On the indirect-method consolidated cash flow statement, amortization of the acquisition differential could plausibly go in operating (it's a non-cash charge) or investing (it sprang from the acquisition). Which section, and what decides it?

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In the year a subsidiary is acquired, what figure is reported as the investing outflow for the acquisition, and how are the assets acquired and liabilities assumed presented?

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