财务报表分析-第四次案例

1ThefollowingdraftfinancialstatementsrelatetoZambeze,apubliclimitedcompany:

DraftGroupBalanceSheetsat30June

20062005

$m$m

Assets:

Non-currentassets:

Property,plantandequipment1,3151,005

Goodwill3025

Investmentinassociate270290

1,6151,320

Currentassets:

Inventories650580

Tradereceivables610530

Cashatbankandcashequivalents50140

1,3101,250

Totalassets2,9252,570

Equityandliabilities:

Sharecapital10085

Sharepremiumaccount3015

Revaluationreserve50145

Retainedearnings254250

434495

Minorityinterest6045

Totalequity494540

Non-currentliabilities850600

Currentliabilities1,5811,430

Totalliabilities2,4312,030

Totalequityandliabilities2,9252,570

DraftGroupIncomeStatementfortheyearended30June2006

$m

Revenue4,700

Costofsales(3,400)

Grossprofit1,300

Distributionandadministrativeexpenses(600)

Financecosts(interestpayable)(40)

Shareofprofitinassociate30

Profitbeforetax690

Incometaxexpense(includingtaxonincomefromassociate$10million)(210)

Profitfortheperiod480

Attributableto:

Equityholdersoftheparent455

Minorityinterest25

480

DraftGroupStatementofRecognisedIncomeandExpensefortheyearended30June2006

$m

Foreignexchangedifferenceofassociate(5)

Impairmentlossesonproperty,plantandequipmentoffsetagainst

revaluationsurplus(95)

Netexpenserecognisedinequity(100)

Profitforperiod455

Totalrecognisedincomeandexpense355

DraftStatementofchangesinequityfortheyearended30June2006

$m

Totalrecognisedincomeandexpensefortheperiod355

Dividendspaid(446)

Newsharesissued30

Totalmovementduringtheyear(61)

Shareholders’fundsat1July2005495

Shareholders’fundsat30June2006434

ThefollowingrelatestoZambeze:

(i)ZambezeacquiredaseventypercentholdinginDamp,apubliclimitedcompany,on1July2005.Thefairvaluesofthenetassetsacquiredwereasfollows:

$m

Property,plantandequipment70

Inventoriesandworkinprogress90

160

Thepurchaseconsiderationwas$100millionincashand$25million(discountedvalue)deferredconsiderationwhichispayableon1July2006.Thedifferencebetweenthediscountedvalueofthedeferredconsideration($25million)andtheamountpayable($29million)isincludedin“interestpayable”.Zambezewantstosetupaprovisionforreconstructioncostsof$10millionretrospectivelyontheacquisitionofDamp.Thisprovisionhasnotyetbeensetup.

(ii)Therehadbeennodisposalsofproperty,plantandequipmentduringtheyear.Depreciationfortheperiodchargedincostofsaleswas$60million.

(iii)Currentliabilitiescomprisedthefollowingitems:

20062005

$m$m

Tradepayables1,3411,200

Interestpayable5045

Taxation190185

1,5811,430

(iv)Non-currentliabilitiescomprisedthefollowing:

20062005

$m$m

Deferredconsideration–purchaseofDamp29–

LiabilityforthepurchaseofProperty,plantandequipment144–

Loansrepayable621555

Provisionfordeferredtax3025

Retirementbenefitliability2620

850600

(v)Theretirementbenefitliabilitycomprisedthefollowing:

$m

Movementinyear:

Liabilityat1July200520

Currentandpastservicecostschargedtoincomestatement13

Contributionspaidtoretirementbenefitscheme(7)

Liability30June200626

Therewasnoactuarialgainorlossintheyear.

(vi)Goodwillwasimpairmenttestedon30June2006andanyimpairmentwasincludedinthefinancialstatementsfortheyearended30June2006.

(vii)TheFinanceDirectorhassetupacompany,River,throughwhichZambezeconductsitsinvestmentactivities.Zambezehaspaid$400milliontoRiverduringtheyearandthishasbeenincludedindividendspaid.Themoneywasinvestedinaspecifiedportfolioofinvestments.NinetyfivepercentoftheprofitsandonehundredpercentofthelossesinthespecifiedportfolioofinvestmentsaretransferredtoZambeze.Aninvestmentmanagerhaschargeofthecompany’sinvestmentsandownsallofthesharecapitalofRiver.AnagreementbetweentheinvestmentmanagerandZambezesetsouttheoperatingguidelinesandprohibitstheinvestmentmanagerfromobtainingaccesstotheinvestmentsforthemanager’sbenefit.Anannualtransferoftheprofit/losswilloccuron30June

annuallyandthecapitalwillbereturnedinfouryearstime.Thetransferof$400millioncashoccurredon1January2006butnotransferofprofit/losshasyetoccurred.ThebalancesheetofRiverat30June2006isasfollows:

River–Balancesheetat30June2006

$m

Investmentatfairvaluethroughprofitorloss390

390

Sharecapital400

Retainedearnings(10)

390

Required:

(a)PrepareagroupcashflowstatementfortheZambezeGroupfortheyearended30June2006usingtheindirectmethod.

(b)DiscusstheissueswhichwoulddeterminewhetherRivershouldbeconsolidatedbyZambezeinthegroupfinancialstatements.

Answer

(a)ZambezeGroup

GroupStatementofCashFlowsfortheyearended30June2006

$m$m

Cashflowsfromoperatingactivities:

Netprofitbeforetaxation690

Adjustmentsfor:

Shareofprofitinassociate(30)

Depreciation60

Impairmentofgoodwill(Working2)8

Interestexpense40

Retirementbenefitexpense13

91

Operatingprofitbeforeworkingcapitalchanges:781

Increaseintradereceivables(80)

Decreaseininventories(650-580-90)20

Increaseintradepayables141

81

Cashgeneratedfromoperations:862

Interestpaid(Working5)(31)

Incometaxespaid(Working4)(190)

Cashpaidtoretirementbenefitscheme(7)

(228)

Netcashfromoperatingactivities:634

Cashflowsfrominvestingactivities

Acquisitionofsubsidiary(100)

Purchaseofproperty,

plantandequipment(Working1)(251)

DividendsreceivedfromAssociate

(Working3)35

InvestmentinRiver(400)

Netcashusedininvestingactivities(716)

Cashflowsfromfinancingactivities:

Proceedsfromissueofsharecapital30

Increaseinlong-termborrowings66

Dividendspaid(Working6)(46)

Minorityinterestdividends(Working2)(58)

Netcashusedinfinancingactivities(8)

Netdecreaseincashandcashequivalents(90)

Cashandcashequivalentsatbeginningofperiod140

Cashandcashequivalentsattheendofperiod50

Working1

$m

Tangiblenon-currentassets

Balanceat1July20051,005

Impairmentlosses(95)

Depreciation(60)

Purchases(bydeduction)395

Acquisition–Damp70

Closingbalance1,315

Cashflowis$395millionminustheliabilityforProperty,plantandequipmentof$144million,ie$251million.

Working2

$m

Purchaseofsubsidiary:

Netassetsacquired160

Group’sshareofnetassets(70%)112

Goodwill13

Purchaseconsideration(100+25)125

Goodwill:

Balanceat1July200525

Goodwillonsubsidiary13

Impairment(8)

Balanceat30June200630

Minorityinterest:

Balanceat1July200545

AcquisitionofDamp(160x30%)48

Profitforyear25

Dividend(58)

Balanceat30June200660

Working3

$m

Dividendfromassociate:

Balanceat1July2005290

Income(netoftax)(30-10)20

Foreignexchangeloss(5)

Dividendsreceived(difference)(35)

Balanceat30June2006270

Working4

$m$m

Taxation:

Balanceat1July2005Incometax185

Deferredtax25

Incomestatements(210–10)200

Taxpaid(difference)(190)

Balanceat30June2006Incometax190

Deferredtax30

220

Working5

$m

Interestpaid:

Balanceat1July200545

Incomestatement40

Unwindingofdiscountonpurchase(4)

Cashpaid(difference)(31)

Closingbalanceat30June200650

Working6

ThecashpaymenttoRivershouldbeshownas“investingactivities”of$400millionandthedividendpaidwillthenbe$(446-400)million,ie$46million.

(b)Thedefinitionof“control”underpinsthedefinitionoftheparentandsubsidiaryrelationship.IAS27Consolidatedandseparatefinancialstatementsstatesthatcontrolispresumedwhentheparentacquiresmorethanhalfofthevotingrightsoftheenterprise.Evenwhenmorethanonehalfofthevotingrightsisnotacquired,controlmaybeevidencedbypower(IAS27,para13)

(i)overmorethanonehalfofthevotingrightsbyvirtueofanagreementwithotherinvestors;or

(ii)togovernthefinancialandoperatingpoliciesoftheotherenterpriseunderastatuteoranagreement;or

(iii)toappointorremovethemajorityofthemembersoftheboardofdirectors;or

(iv)tocastthemajorityofvotesatameetingoftheboardofdirectors.

IAS27emphasisesthatthereferencetopowerinthedefinitionof“control”meanstheabilitytodooraffectsomething.Asaresultanentityhascontroloveranotherentitywhenithastheabilitytoexercisethatpower,regardlessofwhethercontrolisactivelydemonstratedorpassiveinnature.FurtherSIC12,Consolidation–SpecialPurposeEntitiessaysthatspecialpurposeentities(SPEs)shouldbeconsolidatedwherethesubstanceoftherelationshipindicatesthattheSPEiscontrolledbytherep