Seng Pte Ltd is a company incorporated in Singapore and adopts the Singapore FRSs. The comparative statements
Question:
Seng Pte Ltd is a company incorporated in Singapore and adopts the Singapore FRSs. The comparative statements of financial position and extract of its final income statement for Seng Pte Ltd are given as follow:
Additional information:
(1) In December 20X1, Seng Pte Ltd sold its freehold land at cost for cash. There is no other disposal of fixed assets.
(2) During the year, the company renovated its office and capitalised the cost (incurred in cash) accordingly. Depreciation on this cost has also been accounted for
(3) The investments in other companies were also made in cash.
(4) The company’s practice is to classify interest receipts and dividend receipts and interest payments as under operating cash flows and dividend payments as under financing cash flows on the Statement of Cash Flows.
(5) When preparing the Statement of Cash Flows, the company’s practice is to present the section on cash flows from operating activities using the indirect method.
Prepare Seng Pte Ltd’s Statement of Cash Flows for the year ended 31 December 20X1.
Please show all workings clearly.
Financial Accounting
ISBN: 978-1259103285
5th Canadian edition
Authors: Robert Libby, Patricia Libby, Daniel Short, George Kanaan, M