Barclays 2008 Annual Report Download - page 211

3
Financial statements
Barclays PLC Annual Report 2008 209Barclays PLC Annual Report 2008 209
Statement of recognised income and expense
For the year ended 31st December
2008 2007 2006
£m £m £m
Profit after tax 1,193 3,289 1,964
Total recognised income and expense for the year 1,193 3,289 1,964
Cash flow statement
For the year ended 31st December
2008 2007 2006
£m £m £m
Reconciliation of profit before tax to net cash flows from operating activities:
Profit before tax 1,194 3,289 1,964
Changes in operating assets and liabilities:
Net increase in other assets (16) (3) (13)
Net decrease in other liabilities –(3) –
Net cash from operating activities 1,178 3,283 1,951
Capital contribution to subsidiaries (4,362) (1,434) –
Purchase of shares in subsidiaries (16) (316) (179)
Liquidation of subsidiary 205 ––
Net cash used in investing activities (4,173) (1,750) (179)
Issue of shares and other equity instruments 4,911 2,494 179
Dividends paid (2,414) (2,129) (1,814)
Repurchase of ordinary shares (173) (1,802) –
Net cash from financing activities 2,324 (1,437) (1,635)
Net (decrease)/increase in cash and cash equivalents (671) 96 137
Cash and cash equivalents at beginning of year 671 575 438
Cash and cash equivalents at end of year – 671 575
Cash and cash equivalents comprise:
Cash and balances at central banks –671 575
Net cash from operating activities includes:
Dividends received 1,173 3,287 1,964
Interest received 744
The parent company’s main activity is to hold the investment in its wholly-owned subsidiary, Barclays Bank PLC.
The Company was not exposed at 31st December 2008 or 2007 to significant risks arising from the financial instruments it holds; which comprised cash,
balances with central banks, and other assets which had no credit or market risk.
Dividends received are treated as operating income.
Non-cash transactions
During the year Barclays Bank PLC issued £4,050m of Mandatorily Convertible Notes, which mandatorily convert into ordinary shares of Barclays PLC
on or before 30th June 2009. Barclays PLC has the right to receive the Notes in the future; the fair value of which has been included in other assets,
with a corresponding increase net of issue costs in other equity.
The accompanying notes form an integral part of the accounts.