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Extracts from the consolidated financial statements of the Hosta Group are shown below: Consolidated statement of profit and loss and other comprehensive income for the

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Extracts from the consolidated financial statements of the Hosta Group are shown below: Consolidated statement of profit and loss and other comprehensive income for the year ended 30 June 2022 Consolidated statements of financial position as at 30 June: 1. On 1 April 2022, Hosta acquired 70% of the equity of Fern giving it control. The purchase consideration was cash of 2 million and 500,000 equity shares of Hosta. At the date of acquisition the fair value of the equity shares was 2.40 per share. The fair value of the net assets acquired in Fern were as follows: The group policy is to value non-controlling interests at acquisition at fair value. At the date of acquisition the fair value of the non-controlling interest was 1.3 million. 2. Goodwill impairment for the year has been charged in the statement of profit or loss. 3. During the year the group sold property, plant, and equipment with a carrying value of 5 million for 3 million and purchased property, plant and equipment for 112 million. Depreciation for the year has been charged to the consolidated statement of profit or loss. 4. Financial assets are measured at fair value through other comprehensive income. There were no purchases of financial assets during the year and the group sold some financial assets for cash. Gains and losses on financial assets are recorded in other comprehensive income in the statement of profit or loss and other comprehensive income and in other reserves in the statement of financial position. 5. There were no purchases or sale of shares in associates during the year. 6. Hosta has a 90% subsidiary. Hebe. Hebe made a rights issue during the year which was fully subscribed and raised 12 million cash. 7. The short-term investments included in current assets do not meet the IAS 1 definition of Cash Equivalent. Required: Prepare the consolidated statement of cash flows of the Hosta group for the year ended 30 June 2022 in accordance with IAS 7 Statement of Cash Flows. Extracts from the consolidated financial statements of the Hosta Group are shown below: Consolidated statement of profit and loss and other comprehensive income for the year ended 30 June 2022 Consolidated statements of financial position as at 30 June: 1. On 1 April 2022, Hosta acquired 70% of the equity of Fern giving it control. The purchase consideration was cash of 2 million and 500,000 equity shares of Hosta. At the date of acquisition the fair value of the equity shares was 2.40 per share. The fair value of the net assets acquired in Fern were as follows: The group policy is to value non-controlling interests at acquisition at fair value. At the date of acquisition the fair value of the non-controlling interest was 1.3 million. 2. Goodwill impairment for the year has been charged in the statement of profit or loss. 3. During the year the group sold property, plant, and equipment with a carrying value of 5 million for 3 million and purchased property, plant and equipment for 112 million. Depreciation for the year has been charged to the consolidated statement of profit or loss. 4. Financial assets are measured at fair value through other comprehensive income. There were no purchases of financial assets during the year and the group sold some financial assets for cash. Gains and losses on financial assets are recorded in other comprehensive income in the statement of profit or loss and other comprehensive income and in other reserves in the statement of financial position. 5. There were no purchases or sale of shares in associates during the year. 6. Hosta has a 90% subsidiary. Hebe. Hebe made a rights issue during the year which was fully subscribed and raised 12 million cash. 7. The short-term investments included in current assets do not meet the IAS 1 definition of Cash Equivalent. Required: Prepare the consolidated statement of cash flows of the Hosta group for the year ended 30 June 2022 in accordance with IAS 7 Statement of Cash Flows

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