HSBC 2007 Annual Report Download - page 345

343
HSBC Holdings cash flow statement for the year ended 31 December 2007
2007 2006
Notes US$m US$m
Cash flows from operating activities
Profit before tax ...................................................................................................................... 9,598 6,974
Adjustments for:
– non-cash items included in profit before tax .................................................................. 40 10 58
– change in operating assets ............................................................................................... 40 (4,059) (1,827)
– change in operating liabilities ......................................................................................... 40 179 1,056
– elimination of exchange differences1 .............................................................................. (26) (29)
– net gain from investing activities .................................................................................... (12) (8)
– tax received ..................................................................................................................... 268 219
Net cash from operating activities .......................................................................................... 5,958 6,443
Cash flows from investing activities
Net cash outflow from acquisition of and increase in stake of subsidiaries .......................... (5,133) (4,440)
Net cash used in investing activities ...................................................................................... (5,133) (4,440)
Cash flows from financing activities
Issue of ordinary share capital ................................................................................................ 474 1,010
Purchases of own shares to meet share awards and share option awards .............................. (96) (46)
On exercise of share options .................................................................................................. 72 127
Subordinated loan capital issued ............................................................................................ 4,359 2,806
Dividends paid ........................................................................................................................ (6,003) (5,927)
Net cash used in financing activities ...................................................................................... (1,194) (2,030)
Net increase/(decrease) in cash and cash equivalents ....................................................... (369) (27)
Cash and cash equivalents at 1 January ................................................................................. 729 756
Cash and cash equivalents at 31 December ............................................................................ 40 360 729
1 Adjustment to bring changes between opening and closing balance sheet amounts to average rates. This is not done on a line-by-line
basis, as details cannot be determined without unreasonable expense.
The accompanying notes on pages 344 to 452, the audited sections of the ‘Report of the Directors: The Management of Risk’ on pages
192 to 288, ‘Critical accounting policies’ on pages 132 to 134 and ‘Off-balance sheet arrangements and special purpose entities’ on pages
183 to 191 form an integral part of these financial statements.