Aviva 2009 Annual Report Download - page 250

248
Aviva plc Notes to the consolidated financial statements continued
Annual Report and Accounts 2009
53 – Statement of cash flows
This note gives further detail behind the figures in the statement of cash flow.
(a) The reconciliation of profit/(loss) before tax to the net cash inflow from operating activities is:
Restated
2009 2008
£m £m
Profit/(loss) before tax 2,022 (2,368)
Adjustments for:
Share of losses/(profits) of joint ventures and associates 504 1,128
Dividends received from joint ventures and associates 22 87
(Profit)/loss on sale of:
Investment property (339) (14)
Property and equipment (9) —
Subsidiaries, joint ventures and associates (153) (7)
Investments 1,534 9
1,033 (12)
Fair value (gains)/losses on:
Investment property 1,084 3,137
Investments (15,352) 25,510
Borrowings 196 (404)
(14,072) 28,243
Depreciation of property and equipment 115 131
Equity compensation plans, equity settled expense 56 39
Impairment and expensing of:
Goodwill on subsidiaries 30 68
Financial investments, loans and other assets 592 1,040
Acquired value of in-force business and intangibles 25 67
Non-financial assets (1) —
646 1,175
Amortisation of:
Premium or discount on debt securities 303 (12)
Premium or discount on loans (19) (20)
Premium or discount on borrowings 3 2
Premium or discount on participating investment contracts 15 13
Financial instruments (77) (245)
Acquired value of in-force business and intangibles 376 433
601 171
Change in unallocated divisible surplus 1,547 (4,482)
Interest expense on borrowings 1,327 1,547
Net finance income on pension schemes 125 (121)
Foreign currency exchange losses/(gains) (155) 327
Changes in working capital
Decrease in reinsurance assets (124) 1,543
(Increase)/decrease in deferred acquisition costs (567) (328)
Increase/(decrease) in insurance liabilities and investment contracts 15,134 (15,320)
Increase/(decrease) in other assets and liabilities 2,359 (381)
16,802 (14,486)
Net purchases of operating assets
Purchases of investment property (441) (1,846)
Proceeds on sale of investment property 1,267 1,164
Net purchases of financial investments (8,113) (1,960)
(7,287) (2,642)
Cash generated from operations 3,286 8,737
Purchases and sales of investment property, loans and financial investments are included 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.
(b) Cash flows in respect of the acquisition of subsidiaries, joint ventures and associates:
2009 2008
£m £m
Cash consideration for subsidiaries, joint ventures and associates acquired 601 437
Less: Cash and cash equivalents acquired with subsidiaries (5) (101)
Cash flows on acquisitions 596 336