Aviva 2014 Annual Report Download - page 221

Aviva plc Annual report and accounts 2014
217
56 – Statement of cash flows
This note gives further detail behind the figures in the statement of cash flows.
(a) The reconciliation of profit before tax to the net cash inflow from operating activities is:
2014
£m
Restated1
2013
£m
Profit before tax from continuing operations 2,663 1,472
Adjustments for:
Share of profits of joint ventures and associates (147) (120)
Dividends received from joint ventures and associates 52 47
(Profit)/loss on sale of:
Investment property (49) 2
Property and equipment (4)
—
Subsidiaries, joint ventures and associates (174) (115)
Investments (3,040) (3,047)
(3,267) (3,160)
Fair value (gains)/losses on:
Investment property (678) (184)
Investments (11,228) (1,525)
Borrowings 70 (4)
(11,836) (1,713)
Depreciation of property and equipment 19 31
Equity compensation plans, equity settled expense 39 37
Impairment and expensing of:
Goodwill on subsidiaries
—
48
Financial investments, loans and other assets (3) 32
Acquired value of in-force business and intangibles 10 14
Non-financial assets 26
—
33 94
Amortisation of:
Premium or discount on debt securities 255 144
Premium or discount on borrowings (24) (16)
Premium or discount on non participating investment contracts 58
Financial instruments 12 194
Acquired value of in-force business and intangibles 108 110
356 440
Change in unallocated divisible surplus 3,364 (280)
Interest expense on borrowings 525 589
Net finance charge on pension schemes (20) (37)
Foreign currency exchange gains (199) (187)
Changes in working capital
Increase in reinsurance assets (818) (571)
Increase in deferred acquisition costs (21) 90
Increase in insurance liabilities and investment contracts 11,552 3,983
Increase in other assets (1,495) 5,135
9,218 8,637
Net purchases of operating assets
Purchases of investment property (725) (370)
Proceeds on sale of investment property 1,811 1,115
Net sales of financial investments (1,973) (4,033)
(887) (3,288)
Cash (used in)/generated from operating activities
–
continuing operations (87) 2,562
Cash generated from operating activities
–
discontinued operations
—
1,950
Total cash (used in)/generated from operating activities (87) 4,512
1 Restated for the adoption of amendments to IAS 32 ‘Financial Instruments: Presentations’ – see note 1 for details.
The cash flows presented in this statement cover all the Group’s activities and include flows from both policyholder and
shareholder activities. Operating cash flows reflect the movement in both policyholder and shareholder controlled cash and cash
equivalent balances.
During the year the net operating cash outflow reflects a number of factors, including the level of premium income, payments
of claims, creditors and surrenders and purchases and sales of operating assets including financial investments. It also includes
changes in the size and value of consolidated cash investment funds and changes in the Group participation in these funds.
(b) Cash flows in respect of, and additions to, the acquisition of subsidiaries, joint ventures and associates comprised:
2014
£m
2013
£m
Cash consideration for subsidiaries, joint ventures and associates acquired and additions 79 1
Less: Cash and cash equivalents acquired with subsidiaries
—
28
Total cash flow on acquisitions and additions 79 29
Aviva plc Annual report and accounts 2014 |217
IFRS Financial statements