ING Direct 2004 Annual Report Download - page 78

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76 ING Group Annual Report 2004
The cash flow statement has been drawn up in accordance with the indirect method, distinguishing between cash flows from
operating, investing and financing activities.
Cash flows in foreign currencies are translated at the average exchange rates for the year. Where the balance of items in the
cash flow statement does not correspond to the movements in the relevant balance sheet items, this is mainly due to
differences on translation.
In the net cash flow from operating activities, the profit before tax is adjusted for those items in the profit and loss account and
movements in balance sheet items which do not result in actual cash flows during the year.
The net cash flow shown in respect of Lending only relates to transactions involving actual payments or receipts. The Additions
to the provision for loan losses which is deducted from the item Lending in the balance sheet has been adjusted accordingly for
the profit before tax and is shown separately in the cash flow statement.
The investments in and disposals of participating interests have been included in the cash flow from investing activities at
cost/sales price, insofar as payment was made in cash. The cash assets of the consolidated participating interests concerned have
been eliminated from the cost/sales price.
Cash dividends are included in the cash flow from financing activities.
Included in Cash are those assets which can be converted into cash without restriction and without material risk of diminution
in value as a result of the transaction.
The difference between the net cash flow in accordance with the cash flow statement and the movement in Cash in the balance
sheet is due to exchange differences and is separately accounted for as part of the reconciliation of the net cash flow and the
balance sheet movement in cash.
ACCOUNTING PRINCIPLES FOR THE CONSOLIDATED
STATEMENT OF CASH FLOWS OF ING GROUP
2.1
ANNUAL ACCOUNTS