The Core Principle
A consolidated statement of cash flows presents the cash flows of a parent and its subsidiaries as though the group were a single entity. It reports only the cash that moved between the group and parties outside it.
Cash moving from one group company to another is not a cash flow of the group at all, and never appears in it. Everything else is classified into operating, investing and financing activities exactly as for any other reporting entity.
What changes is the input. A consolidated cash flow statement is prepared from the consolidated statement of financial position, the consolidated statement of comprehensive income and the consolidated statement of changes in equity, and it is prepared after consolidation is complete. The parent's own figures are never the starting point, and the group's statement is not the sum of the individual companies' cash flow statements.
What Makes a Group Different
The mechanics of each calculation — cash received from customers, cash paid to suppliers and employees, tax paid, interest paid — are the same as for any other entity, and are worked through in detail in our direct method guide. The reconciling items that convert accrual profit into operating cash flow are set out in our guide to cash flow statement adjustments.
Two things separate a group cash flow statement from a single-entity one, and it is worth naming both before working through the adjustments.
Transactions only a group can enter into
These are real cash flows, but they have no equivalent in a single company and each has its own presentation:
| Transaction | Presentation |
|---|---|
| Obtaining control of a subsidiary | Single line in investing activities, net of the cash and cash equivalents acquired |
| Losing control of a subsidiary | Single line in investing activities, net of the cash and cash equivalents disposed of |
| Buying or selling an interest without a change in control | Financing activities, as a transaction with owners |
| A rights issue by a subsidiary taken up by its non-controlling shareholders | Financing activities, as a cash inflow to the group |
| Dividends paid by a subsidiary to its non-controlling shareholders | Financing activities, as a distribution to shareholders outside the group |
| Dividends received from, and advances made to, associates and joint ventures | Investing activities, being the only cash flows an equity accounted investee produces |
Amounts that consolidation itself creates
This is the larger source of difficulty. Consolidation recognises amounts that never passed through any bank account in the group, and they sit inside the consolidated figures you are about to reconcile.
When control is obtained, IFRS 3 requires the acquiree's identifiable assets and liabilities to be recognised at their acquisition-date fair values, not at the carrying amounts in the subsidiary's own books. Everything else follows from that single requirement:
| What consolidation creates | Why it never touched cash |
|---|---|
| Fair value adjustments to the acquired assets and liabilities | Consolidated property, plant and equipment, inventory and intangibles include an uplift that nobody paid for as a separate transaction, and that uplift depreciates or amortises through consolidated profit for years afterwards |
| Deferred tax on those fair value adjustments | Raised as part of the net assets acquired, so it is not tax paid and must be kept out of the tax reconciliation |
| Goodwill | The residual left after comparing the consideration and non-controlling interest with the fair value of the identifiable net assets. It exists only in the group accounts, and its impairment is a group-only expense |
| Gain on bargain purchase | Income recognised purely because the net assets acquired exceeded what was paid for them |
| Non-controlling interest | A measurement of the outside shareholders' share of the subsidiary, recognised on acquisition and moving thereafter with profits, dividends and ownership changes |
| Intragroup eliminations | Intragroup sales, interest, management fees, dividends, leases and unrealised profit in inventory are removed in full, changing consolidated revenue, expenses, assets and liabilities without changing anyone's bank balance |
| Equity accounted results | The share of an associate's or joint venture's profit increases the carrying amount of the investment and consolidated profit, with no cash until a dividend is declared |
| The foreign currency translation reserve | Retranslating a foreign operation changes every consolidated balance it holds, purely because the closing rate changed |
None of the items in the second table is a cash flow, and all of them sit inside the movements you are trying to explain. The adjustments in the next section are simply the exercise of taking them back out.
Group-Specific Non-Cash Adjustments
Every non-cash item in consolidated profit has to be removed in the operating reconciliation, whether you are reversing it out of profit before tax under the indirect method or excluding it from the expenses balancing figure under the direct method.
The general items — depreciation, impairments, provisions, deferred tax, unrealised exchange differences — are covered in the adjustments guide. The following exist only because there is a group.
| Item | Why it is not cash |
|---|---|
| Goodwill impairment | Goodwill arising on consolidation exists only in the group accounts. The cash it represents left the group when the subsidiary was acquired, and was presented then. |
| Gain on bargain purchase | A measurement outcome of the acquisition recognised directly in consolidated profit. Easily forgotten because it appears as income with no obvious counterparty. |
| Depreciation and amortisation of fair value adjustments | Assets are remeasured to fair value at acquisition date, and the additional depreciation on that uplift runs through consolidated profit for the rest of the asset's life. |
| Elimination of unrealised profit in inventory | The movement in the unrealised profit adjustment changes consolidated cost of sales and consolidated inventory without any cash moving. |
| Share of profit of associates and joint ventures | Equity accounted earnings are not cash. Only dividends received and advances made are cash flows, per IAS 7.37–.38. |
| Remeasurement gain or loss on a step acquisition | When an investment or associate becomes a subsidiary, the previously held interest is remeasured to fair value through profit or loss. No cash changes hands on the remeasurement itself. |
| Gain or loss on disposal of a subsidiary | The proceeds are an investing inflow. The gain is the difference between those proceeds and the net assets and goodwill derecognised, and must not be counted twice. |
| Fair value of a retained interest on loss of control | Where part of the holding is retained and remeasured to fair value as an associate or financial asset, that fair value forms part of the accounting gain but is not consideration received. |
| Foreign Currency Translation Reserve (FCTR) reclassified to profit or loss | On disposal of a foreign operation the cumulative translation reserve is recycled into profit. It is a movement within equity and profit, never cash. |
| Group share-based payment expense | Where an arrangement is classified differently in a subsidiary's own financial statements and in the consolidated financial statements, the consolidated expense will not equal the cash paid. Equity-settled amounts are non-cash; cash-settled amounts produce a cash flow only on settlement. |
One item that is not group-specific but which routinely appears alongside these is the movement in unearned finance income where the group has lessor operations. Finance income is recognised as the unearned amount unwinds, without a matching receipt in the period, so the income and the cash received under the lease diverge.
Intragroup leases deserve a specific mention. A lease between two group companies is eliminated in full on consolidation, so neither the right-of-use asset nor the lease liability appears in the consolidated balances and neither the interest nor the principal appears in the consolidated cash flow statement.
The wider treatment is set out in our article on intercompany leases under IFRS 16. Where a group acquires a subsidiary that holds leases, the lease liability and right-of-use asset are measured afresh at the acquisition date under IFRS 3, as explained in leases in a business combination, and those acquisition-date amounts are part of the net assets acquired rather than cash flows of the period.
Reconstructing Group Balances
Every balance sheet reconciliation used to derive a cash figure needs additional lines in a group. The pattern is always the same: the balance acquired with a subsidiary is added, the balance disposed of with a subsidiary is removed, exchange differences on translating a foreign operation are removed, and only then is the cash movement taken as the balancing figure.
| Reconciliation | Additional lines required |
|---|---|
| Receivables, inventory, payables | Balances acquired with a subsidiary; balances disposed of with a subsidiary; exchange differences; movement in unrealised profit in inventory |
| Property, plant and equipment | Assets acquired with a subsidiary at fair value; assets disposed of with a subsidiary; fair value adjustments recognised at acquisition; right-of-use assets recognised on new leases; reclassifications to assets held for sale |
| Tax (current and deferred) | Current and deferred tax balances acquired and disposed of; deferred tax raised on fair value adjustments at acquisition date, which is part of the net assets acquired and not tax paid |
| Borrowings and lease liabilities | Liabilities assumed on acquisition; liabilities derecognised on disposal; new lease liabilities recognised; exchange differences on foreign currency borrowings |
| Investment in associates | Share of profit; dividends received; carrying amount transferred out when an associate becomes a subsidiary; carrying amount of a retained interest transferred in when control is lost |
| Non-controlling interest | See the reconciliation in the non-controlling interests section below |
Acquiring a Subsidiary
IAS 7 paragraph 39 requires the aggregate cash flows arising from obtaining control of a subsidiary to be presented separately and classified as investing activities. Paragraph 41 requires that amount to be presented net of the cash and cash equivalents acquired. The result is a single line, and the reason it is a single line is that it already stands in for every asset and liability that came with the subsidiary.
| Acquisition of subsidiary | Currency |
|---|---|
| Net assets acquired at fair value, excluding cash and cash equivalents | (785,000) |
| Cash and cash equivalents acquired | (15,000) |
| Goodwill recognised | (25,000) |
| Non-controlling interest recognised | 160,000 |
| Total consideration | (665,000) |
| Add: deferred and contingent consideration not yet settled | 200,000 |
| Add: cash and cash equivalents acquired | 15,000 |
| Net cash outflow on acquisition | (450,000) |
Three consequences follow from that single line:
- Nothing acquired may appear anywhere else. The inventory, receivables, plant, borrowings and deferred tax that arrived with the subsidiary are already inside the 450,000. If they are also left in the movement in each of those accounts, the group reports cash flows that never happened.
- The subsidiary's bank balance reduces the outflow. Cash acquired is not an investing inflow in its own right; it is netted against the consideration. Where the subsidiary was carrying an overdraft, it increases the outflow instead.
- Unpaid consideration is not a cash flow yet. Deferred and contingent consideration is excluded until settled.
A useful special case: where the consideration is settled entirely by issuing the parent's own shares, there is no outflow at all, but the subsidiary's bank balance still joins the group. The acquisition line becomes a net cash inflow equal to the cash acquired. The share issue is a non-cash financing transaction, excluded from the statement and disclosed under IAS 7 paragraph 43, and it must not be swept into proceeds from shares issued.
Disposing of a Subsidiary
Losing control is the mirror image, presented as a single investing inflow net of the cash and cash equivalents disposed of.
| Disposal of subsidiary | Currency |
|---|---|
| Net assets derecognised, including the subsidiary's bank overdraft | 1,040,000 |
| Goodwill derecognised | 25,000 |
| Non-controlling interest derecognised | (260,000) |
| Gain on disposal recognised in profit or loss | 45,000 |
| Total consideration | 850,000 |
| Add: bank overdraft of the subsidiary derecognised | 30,000 |
| Net cash inflow on disposal | 880,000 |
The overdraft is the counter-intuitive part. It leaves the group with the subsidiary, so the group's net cash position improves by 30,000 even though nobody paid it, and the presented inflow exceeds the consideration received.
Four things have to be dealt with alongside the disposal line:
- The gain of 45,000 is non-cash and must be removed from the operating reconciliation.
- Any cumulative FCTR recycled to profit or loss on the disposal of a foreign operation must be removed on the same basis.
- Any retained interest remeasured to fair value forms part of the accounting gain but is not consideration received, and must be excluded from the cash figure.
- Any deferred proceeds are excluded until received, with only the present value recognised at the disposal date sitting in the total consideration.
Where the subsidiary disposed of was a discontinued operation, IFRS 5 paragraph 33(c) requires the net cash flows attributable to the operating, investing and financing activities of that operation to be disclosed. In practice the calculations are done for the group as a whole in the ordinary way, and the discontinued operation's share of each total is identified afterwards for the note.
Non-Controlling Interests and Ownership Changes
Non-controlling interests generate two distinct cash flow effects, and neither of them appears on the face of the financial statements ready to use.
Changes in ownership without a loss of control. Under IAS 7 paragraphs 42A and 42B, cash flows from a change in the parent's ownership interest in a subsidiary that does not result in a loss of control are classified as financing activities. No gain or loss arises, because IFRS 10 treats these as transactions between owners recognised directly in equity, so there is nothing to reverse in the operating reconciliation.
A rights issue by a subsidiary that is taken up by the non-controlling shareholders is a genuine cash inflow to the group and is presented on the same basis.
Dividends paid to non-controlling shareholders. These are cash leaving the group and belong in financing activities. In a group holding several partly-owned subsidiaries the total is assembled from each subsidiary's distributions, and the non-controlling interest reconciliation is what agrees it to the movement in the consolidated balance.
| Non-controlling interest | Currency |
|---|---|
| Opening balance | xxx |
| Add: total comprehensive income attributable to NCI | xxx |
| Add: NCI recognised on acquisition of a subsidiary | xxx |
| Less: NCI derecognised on disposal of a subsidiary | (xxx) |
| Add or less: changes in ownership interest without a loss of control | xxx |
| Add: rights issue taken up by non-controlling shareholders | xxx |
| Less: closing balance | (xxx) |
| Dividends declared to NCI (balancing figure) | xxx |
Dividends paid to the parent's own shareholders are agreed on the same basis, against a reconciliation of consolidated retained earnings: opening balance, plus the profit attributable to owners of the parent only, less the closing balance, leaves the dividends declared by the parent. The profit attributable to non-controlling interests belongs in the reconciliation above, not this one, and dividends declared by a subsidiary to its parent appear in neither, having been eliminated on consolidation. Both are declared amounts, so where a dividends payable balance exists they run through it together to reach the amounts actually paid.
Worked Example
Apex Ltd is the parent of a group with one existing subsidiary. On 1 July 2026 it acquired a further subsidiary. The example below carries a single acquisition, goodwill, depreciation and a dividend to non-controlling shareholders, so that each group-specific step can be seen on its own.
Consolidated statement of financial position
| As at 31 December | 2026 | 2025 |
|---|---|---|
| Property, plant and equipment | 4,180,000 | 3,200,000 |
| Goodwill | 720,000 | 500,000 |
| Inventory | 900,000 | 620,000 |
| Trade receivables | 1,010,000 | 780,000 |
| Cash and cash equivalents | 250,000 | 1,150,000 |
| Total assets | 7,060,000 | 6,250,000 |
| Share capital | 1,500,000 | 1,500,000 |
| Retained earnings | 3,280,000 | 2,790,000 |
| Non-controlling interest | 490,000 | 340,000 |
| Borrowings | 820,000 | 900,000 |
| Trade payables | 760,000 | 540,000 |
| Current tax payable | 210,000 | 180,000 |
| Total equity and liabilities | 7,060,000 | 6,250,000 |
Consolidated statement of profit or loss
| Year ended 31 December 2026 | Amount |
|---|---|
| Revenue | 6,000,000 |
| Cost of sales and other operating expenses | (4,300,000) |
| Depreciation | (420,000) |
| Impairment of goodwill | (80,000) |
| Finance costs | (60,000) |
| Profit before tax | 1,140,000 |
| Income tax expense | (320,000) |
| Profit for the year | 820,000 |
| Attributable to owners of the parent | 790,000 |
| Attributable to non-controlling interests | 30,000 |
There was no other comprehensive income in either year.
Additional information
On 1 July 2026 Apex acquired 75% of Basil Ltd for 900,000, settled in cash. Non-controlling interest was measured at its proportionate share of the identifiable net assets. The acquisition-date fair values were:
| Basil Ltd at 1 July 2026 | Fair value |
|---|---|
| Property, plant and equipment | 700,000 |
| Inventory | 180,000 |
| Trade receivables | 160,000 |
| Cash and cash equivalents | 60,000 |
| Trade payables | (140,000) |
| Current tax payable | (40,000) |
| Borrowings | (120,000) |
| Identifiable net assets | 800,000 |
| Non-controlling interest (25% × 800,000) | 200,000 |
| Consideration transferred | 900,000 |
| Goodwill recognised | 300,000 |
This table is also most of what IAS 7 paragraph 40 requires to be disclosed: the total consideration, the portion settled in cash, the cash and cash equivalents held by Basil, and the other assets and liabilities acquired by major category.
No property, plant and equipment was disposed of during the year, and no shares were issued. There were no dividends outstanding and no interest accrued at either reporting date, so amounts declared and incurred equal amounts paid.
Consolidated statement of cash flows
| Year ended 31 December 2026 | Amount | Working |
|---|---|---|
| Cash flows from operating activities | ||
| Profit before tax | 1,140,000 | |
| Adjusted for: depreciation | 420,000 | |
| Adjusted for: impairment of goodwill | 80,000 | W2 |
| Adjusted for: finance costs | 60,000 | |
| Increase in inventory | (100,000) | W4 |
| Increase in trade receivables | (70,000) | W5 |
| Increase in trade payables | 80,000 | W6 |
| Cash generated from operations | 1,610,000 | |
| Interest paid | (60,000) | |
| Tax paid | (330,000) | W7 |
| Net cash from operating activities | 1,220,000 | |
| Cash flows from investing activities | ||
| Acquisition of subsidiary, net of cash acquired | (840,000) | W1 |
| Purchase of property, plant and equipment | (700,000) | W3 |
| Net cash used in investing activities | (1,540,000) | |
| Cash flows from financing activities | ||
| Repayment of borrowings | (200,000) | W8 |
| Dividends paid to owners of the parent | (300,000) | W10 |
| Dividends paid to non-controlling interests | (80,000) | W9 |
| Net cash used in financing activities | (580,000) | |
| Net decrease in cash and cash equivalents | (900,000) | |
| Cash and cash equivalents at the beginning of the year | 1,150,000 | |
| Cash and cash equivalents at the end of the year | 250,000 |
Workings
W1: Acquisition of Basil, net of cash acquired
| Consideration settled in cash | (900,000) |
| Less: cash and cash equivalents acquired | 60,000 |
| Net cash outflow, presented as a single investing line | (840,000) |
Every other asset and liability of Basil is inside this figure. That is why each working below carries a line removing the balance acquired: if Basil's 160,000 of receivables were left in the receivables movement, the group would report collecting cash it never collected.
W2: Goodwill
| Opening balance | 500,000 |
| Recognised on the acquisition of Basil | 300,000 |
| Impairment charged to profit or loss | (80,000) |
| Closing balance | 720,000 |
Goodwill produces no cash flow of its own. The 300,000 arose from the acquisition, whose cash effect is already in W1, and the 80,000 impairment is a non-cash expense added back in the reconciliation.
W3: Property, plant and equipment
| Opening balance | 3,200,000 |
| Acquired with Basil at fair value | 700,000 |
| Depreciation for the year | (420,000) |
| Cash purchases (balancing figure) | 700,000 |
| Closing balance | 4,180,000 |
The balance increased by 980,000. Adding back depreciation but failing to remove the 700,000 acquired with Basil would give capital expenditure of 1,400,000 — exactly double the true figure.
W4: Inventory
| Opening balance | 620,000 |
| Acquired with Basil | 180,000 |
| Increase excluding the acquisition (balancing figure) | 100,000 |
| Closing balance | 900,000 |
W5: Trade receivables
| Opening balance | 780,000 |
| Acquired with Basil | 160,000 |
| Increase excluding the acquisition (balancing figure) | 70,000 |
| Closing balance | 1,010,000 |
W6: Trade payables
| Opening balance | 540,000 |
| Acquired with Basil | 140,000 |
| Increase excluding the acquisition (balancing figure) | 80,000 |
| Closing balance | 760,000 |
The three working capital movements taken to the cash flow statement are 100,000, 70,000 and 80,000. The movements on the face of the statement of financial position are 280,000, 230,000 and 220,000. The difference in each case is the balance that arrived with Basil.
W7: Tax paid
| Opening current tax payable | 180,000 |
| Acquired with Basil | 40,000 |
| Income tax expense for the year | 320,000 |
| Tax paid (balancing figure) | (330,000) |
| Closing current tax payable | 210,000 |
W8: Borrowings
| Opening balance | 900,000 |
| Assumed on the acquisition of Basil | 120,000 |
| Repaid in cash (balancing figure) | (200,000) |
| Closing balance | 820,000 |
Borrowings fell by 80,000 on the face of the statement of financial position, but 200,000 was actually repaid. The 120,000 assumed with Basil is a non-cash change, and it is this line that must appear in the separate non-cash column of the reconciliation of liabilities arising from financing activities required by IAS 7 paragraph 44A.
W9: Non-controlling interest and dividends paid to non-controlling shareholders
| Opening balance | 340,000 |
| Recognised on the acquisition of Basil (25% × 800,000) | 200,000 |
| Total comprehensive income attributable to non-controlling interests | 30,000 |
| Dividends declared to non-controlling shareholders (balancing figure) | (80,000) |
| Closing balance | 490,000 |
Three of the four movements in the non-controlling interest balance are not distributions, which is why the reconciliation is worth setting out. Unless the 200,000 recognised on the acquisition and the 30,000 share of profit are taken out, the 150,000 increase in the balance conceals a distribution of 80,000 running in the opposite direction. Because no dividends were outstanding at either reporting date, the amount declared is also the amount paid, and it is presented within financing activities. Had a dividends payable balance existed, the 80,000 declared would run through that account, together with the parent's declared dividend, to reach the amounts actually paid.
W10: Retained earnings and dividends paid by the parent
| Opening balance | 2,790,000 |
| Profit attributable to owners of the parent | 790,000 |
| Dividends declared by the parent (balancing figure) | (300,000) |
| Closing balance | 3,280,000 |
Only the profit attributable to the owners of the parent enters this reconciliation. The 30,000 attributable to non-controlling interests belongs in W9. Dividends declared by a subsidiary to Apex never appear in either working, because they were eliminated on consolidation.
What the example leaves out
This group has no disposal, no foreign operation, no associate and no intragroup trading. Each of those adds further lines to the same reconciliations rather than changing the method, and each is dealt with in its own section above.
Consolidating lease balances across a group?
Leash keeps every entity's IFRS 16 schedules, journals and disclosures in one place, so the group numbers you consolidate are the ones you can support.
Group Disclosures
Alongside the ordinary IAS 7 disclosures, a group has the following.
| Requirement | What must be disclosed |
|---|---|
| IAS 7.40 — acquisitions and disposals | In aggregate for each acquisition and each disposal of subsidiaries or other businesses: the total consideration; the portion of it settled in cash and cash equivalents; the amount of cash and cash equivalents in the entity acquired or disposed of; and the other assets and liabilities acquired or disposed of, summarised by major category. |
| IAS 7.43 — non-cash transactions | Investing and financing transactions not requiring cash, excluded from the statement and disclosed elsewhere. In a group this typically includes a subsidiary acquired by issuing shares, new lease liabilities, and property, plant and equipment acquired on credit. |
| IAS 7.44A–.44E — financing liabilities | A reconciliation of opening to closing balances of liabilities arising from financing activities, separating cash flows from non-cash changes. A group needs a distinct column for changes arising from obtaining or losing control of subsidiaries, alongside new leases, exchange differences and fair value changes. |
| IAS 7.45 — components of cash | The components of cash and cash equivalents and a reconciliation to the equivalent amounts in the consolidated statement of financial position, together with the policy adopted in determining the composition. |
| IAS 7.48 — cash not available for use | The amount of significant cash and cash equivalent balances held by the group that are not available for use by the group, with commentary from management. The usual case is a foreign subsidiary holding a substantial balance in a jurisdiction with exchange control restrictions. |
| IFRS 5.33(c) — discontinued operations | The net cash flows attributable to the operating, investing and financing activities of a discontinued operation, either in the notes or on the face of the statement. |
The paragraph 44A reconciliation is the one that most often gets thin treatment in a group. Where a subsidiary with borrowings is acquired or disposed of, the change in group borrowings caused by that transaction is not a financing cash flow and must be shown in its own non-cash column, or the note will contradict the face of the statement.
A Working Checklist
The items below are the ones most often missed. They are worth a deliberate second pass once the statement is drafted.
- Gain on bargain purchase — income in consolidated profit with no cash behind it, and easy to overlook because nothing else in the accounts draws attention to it.
- Gain or loss on disposal of a subsidiary versus the proceeds — the proceeds go to investing; the gain comes out of operating. Presenting the gain and the proceeds separately without removing the gain double counts it.
- Remeasurement gains — on a step acquisition, and on a retained interest when control is lost.
- Dividends declared to non-controlling interests — frequently omitted entirely.
- Balances acquired and disposed of — every working capital, non-current asset, tax and borrowings reconciliation needs them.
- The subsidiary's bank balance or overdraft — netted against the consideration, not shown separately.
- Gross receivables — bad debts and the movement in the allowance for credit losses are separate.
- Trade payables only — strip out interest payable and amounts owing for capital expenditure first.
- FCTR recycled on disposal of a foreign operation — non-cash, and it sits inside consolidated profit.
- Exchange differences on cash held — a separate reconciling line, not an activity category.
- Share of profit of associates and dividends received from them — remove the first, present the second.
- Assets acquired under new leases — a non-cash addition to both the asset and the liability reconciliation.
Groups reporting under IFRS 18 for periods beginning on or after 1 January 2027 should also note that the classification choices for interest and dividends are being narrowed, which changes several of the presentation decisions above. Those changes are set out in our article on IFRS 18 and the cash flow statement.
Conclusion
A consolidated cash flow statement is not a different statement. It is the same statement, prepared from consolidated figures once consolidation is complete, and every group-specific complication reduces to the same underlying point: a consolidated balance moved without cash moving, and that movement has to be identified and removed before the cash figure can be taken as the balancing amount.
Acquisitions and disposals of subsidiaries are the largest source of those movements, and IAS 7 handles them by collapsing everything into a single investing line net of the cash carried in or out. Non-controlling interests, foreign operations and equity accounted investees each add their own non-cash movements, but they are worked through in exactly the same way. Get the additional lines into each reconciliation and the group statement becomes, once again, an ordinary cash flow statement.
For clarification, guidance, or feedback on our article, please reach out to us at insight@leash.co.za.