IAS 7 - Consolidated Cash Flow Statement

The following are the consolidated financial statement from the records of MT Bhd (MTB) for 2011 incorporating its subsidiary JK Bhd (JKB).

Consolidated Statement of Comprehensive Income for the year ended 31 December 2011

	(RM)000	(RM)000
Sales		6,220
Cost of Goods Sold		(2,700)
Gross Profit		3,520
Less Expenses:
Depreciation	180
Insurance Expenses	24
Other Expenses	1,076
		(1,280)
Operating Income		2,240
Gain on sale of Plant		20
Total Comprehensive Income		2,260
Profit after tax attributable to:
Shareholders of MTB		2,160
Non-Controlling Interest		100
Total Comprehensive Income		2,260

Consolidated Statement of Financial Position as at 31 December 2011

	(RM)000	(RM)000
	2011	2010
Cash	1,680	150
Accounts Receivable	225	250
Inventories	285	205
Land	1,700	1,000
PPE	2,790	2,700
Accumulated Dep.	(790)	(680)
Goodwill	100	100
	5,990	3,725
Shareholders Fund:
Share Capital	2,400	2,400
Retained Earnings	2,590	750
	4,990	3,150
Non-Controlling Interest	220	150
Accounts Payable	260	175
Notes Payable	270	200
Asset Revaluation Reserve	250	50
	5,990	3,725

Additional Information:

1). MTB had acquired 80% interest in JKB on 1 January 2001. On that date the shareholders funds of JKB totaled RM800K. Before the purchase, an item of long term asset which was undervalued by RM50K was subsequently revalued. MTB had paid RM830K for JKB shares. The payment consisted of 200K shares (RM1 par) and RM230K cash. The market value of MTB shares on the acquisition date was RM3 per share.

2). There is no impairment of goodwill for the current year.

3). During the year 2011, MTB paid RM320K dividend. JKB earned net income of RM500K and paid RM150K dividend.

4) During the year an additional piece of land was purchased for RM500K. The existing land was revalued to RM1,200K.

5) During the last quarter, a piece of machinery which had originally cost RM180K and had been depreciated RM70K was sold by MTB for RM130K. Another machine was immediately purchased for RM270K paying by a promissory note of RM70K and the balance by cash.

You are required to prepare:

a). The worksheet for the preparation of a consolidated cash flow statement.

b). The consolidated statement of cash flows for the year ended 31 December 2011.