What will the PBT figure include under cash flows from operating activities?

Prepare for the ACA ICAEW Financial Accounting and Reporting Exam with interactive quizzes and detailed explanations to ensure success!

The figure for Profit Before Tax (PBT) in the context of cash flows from operating activities encompasses both continuing and discontinued group operations. This reflects the overall profitability of the company, providing a complete picture of its financial performance prior to taxation.

In this context, continuing operations refer to the core business activities that are expected to continue into the future, while discontinued operations provide insight into segments or lines of business that have been sold or closed. Including both allows stakeholders to understand the company’s performance comprehensively, as it shows how each segment contributes to profitability.

Disregarding ongoing and discontinued operations could give a skewed view of the company's overall health and performance. Thus, PBT incorporates all operational results to provide a robust framework for assessing the financial condition and performance of the business.

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