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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.
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2005
£m |
|
|
2004
£m |
|
|
2003
£m |
|
|
|
|
Net
cash provided by operating activities
|
|
|
4,586 |
|
|
4,632 |
|
|
3,395 |
|
|
Net
cash (used) provided by investing activities
|
|
|
(2,012 |
) |
|
(3,460 |
) |
|
1,253 |
|
|
Net
cash used in financing activities
|
|
|
(2,269 |
) |
|
(3,093 |
) |
|
(2,852 |
) |
|
|
|
Net
(decrease) increase in cash and cash equivalents
|
|
|
305 |
|
|
(1,921 |
) |
|
1,796 |
|
|
Effect
of exchange rate changes on cash
|
|
|
– |
|
|
(5 |
) |
|
13 |
|
|
Cash
and cash equivalents under US GAAP at beginning of year
|
|
|
1,007 |
|
|
2,933 |
|
|
1,124 |
|
|
|
|
Cash
and cash equivalents under US GAAP at end of year
|
|
|
1,312 |
|
|
1,007 |
|
|
2,933 |
|
|
Short-term
investments with original maturities of less than three
months
|
|
|
(1,106 |
) |
|
(898 |
) |
|
(2,842 |
) |
|
|
|
Cash
at bank and in hand under UK GAAP at end of year
|
|
|
206 |
|
|
109 |
|
|
91 |
|
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