Aviva 2006 Annual Report Download - page 196

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Aviva plc
Annual Report and Accounts 2006 192
Notes to the consolidated financial statements continued
48 – Cash flow statement
(a) The reconciliation of profit/(loss) before tax to the net cash inflow from operating activities is:
2006 2005
£m £m
Profit before tax 3,323 3,450
Adjustments for:
Share of profits of joint ventures and associates (485) (340)
Dividends received from joint ventures and associates 71 95
Profit on sale of investment property (46) (41)
Profit on sale of property and equipment (2) (2)
Profit on sale of subsidiaries, joint ventures and associates (222) (153)
Profit on sale of investments (5,334) (4,616)
Fair value gains on investment property (1,507) (1,571)
Fair value losses/(gains) on investments 790 (8,813)
Fair value (gains)/losses on borrowings (52) 62
Depreciation of property and equipment 122 112
Equity compensation plans, equity settled expense 48 22
Impairment of goodwill on subsidiaries 94 43
Impairment of other investments and loans (5) 19
Impairment of acquired value of in-force business and intangibles 26 35
Impairment of non financial assets 538
Amortisation of premium or discount on debt securities 278 (93)
Amortisation of premium or discount on loans –(38)
Amortisation of premium or discount on borrowings 52
Amortisation of acquired value of in-force business and intangibles 130 65
Change in unallocated divisible surplus 558 1,474
Interest expense on borrowings 825 607
Finance income on pension deficit (77) (32)
Foreign currency exchange gain/loss (99) 203
Changes in working capital
(Increase)/decrease in reinsurance assets 966 1,192
(Increase)/decrease in deferred acquisition costs 51 (466)
(Increase)/decrease in insurance liabilities and investment contracts 9,974 18,581
(Increase)/decrease in other assets and liabilities (4,301) 135
Net purchases of operating assets
Purchases of investment property (1,888) (1,956)
Proceeds on sale of investment property 1,587 1,292
Net purchases of financial investments (2,380) (6,522)
Cash generated from operations 2,455 2,784
Purchases and sales of investment property,loans and financial investments areincluded within operating cash flows as the purchases
are funded from cash flows associated with the origination of insurance and investment contracts, net of payments of related benefits
and claims.
Financial statements continued