|
|
|
v Consolidated
statements of cash flows
Under UK GAAP, the Consolidated
Statements of Cash Flows are presented in accordance with UK Financial
Reporting Standard No. 1 (FRS 1). The statements prepared under FRS 1 present
substantially the same information as that required under SFAS No. 95.
Under
SFAS No. 95, cash and cash equivalents include cash and short-term investments
with maturities of three months or less at the date of purchase. Under FRS 1
cash comprises cash in hand and at bank and overnight deposits, net of bank
overdrafts.
Under
FRS 1, cash flows are presented for operating activities; returns on
investments and servicing of finance; taxation; capital expenditure and
financial investments; acquisitions and disposals; dividends paid to the
company’s shareholders; management of liquid resources and financing. SFAS No.
95 requires a classification of cash flows as resulting from operating,
investing and financing activities.
Cash
flows under FRS 1 in respect of interest received, interest paid (net of that
capitalised under US GAAP) and taxation would be included within operating
activities under SFAS No. 95. Cash flows from purchases, sales and maturities
of trading securities, while not separately identified under UK GAAP, would be
included within operating activities under US GAAP. Capitalised interest, while
not recognised under UK GAAP, is included in investing activities under US
GAAP. Dividends paid are included within financing activities under US GAAP.
The
following statements summarise the statements of cash flows as if they had been
presented in accordance with US GAAP, and include the adjustments which
reconcile cash and cash equivalents under US GAAP to cash at bank and in hand
reported under UK GAAP.
| |
2004 |
|
2003 |
|
2002 |
|
| |
£m |
|
£m |
|
£m |
|
|
|
|
|
|
|
|
| Net cash provided by operating activities |
4,632 |
|
3,395 |
|
1,455 |
|
| Net cash (used) provided by investing
activities |
(3,460 |
) |
1,253 |
|
3,049 |
|
| Net cash used in financing activities |
(3,093 |
) |
(2,852 |
) |
(5,611 |
) |
|
|
|
|
|
|
|
| Net (decrease) increase in cash and cash
equivalents |
(1,921 |
) |
1,796 |
|
(1,107 |
) |
| Effect of exchange rate changes on cash |
(5 |
) |
13 |
|
(50 |
) |
| Cash and cash equivalents under US GAAP
at beginning of year |
2,933 |
|
1,124 |
|
2,281 |
|
|
|
|
|
|
|
|
| Cash and cash equivalents under US GAAP
at end of year |
1,007 |
|
2,933 |
|
1,124 |
|
| Short-term investments with original
maturities of less than three months |
(898 |
) |
(2,842 |
) |
(966 |
) |
|
|
|
|
|
|
|
| Cash at bank and in hand under UK GAAP at
end of year |
109 |
|
91 |
|
158 |
|
|
|
|
|
|
|
|
|
|
