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85
NOTE 14
CASH AND CASH EQUIVALENTS
14
Accounting policy
– Cash and cash equivalents
Cash and cash equivalents includes cash on hand, cash at bank, and deposits held with financial institutions for
which there is a short-term identified use in the operating cash flows of the Group. Bank overdrafts, should they
occur, are shown within borrowings in current liabilities in the statement of financial position.
2016
2015
$’000
$’000
Current Assets
Cash at bank and on deposit
126,709
59,424
Cash at bank and on deposit attracts interest at rates between 0% and 1.90% per annum (2015: 0% and 2.93%).
Cash at bank in the statement of financial position at reporting date includes cash held by the Parent company
and its controlled entities. At 31 July 2016, New Hope Corporation Limited, a controlled entity of Washington H.
Soul Pattinson and Company Limited held $91.162 million (2015: $24.789 million) of the consolidated balance.
Reconciliation of profit after income tax to
net cash inflow from operating activities
2016
2015
$’000
$’000
Profit after tax for the year
129,459
75,554
Adjustments for non-cash items:
Depreciation and amortisation
79,613
82,749
Impairment charges
116,539
123,801
Net (gain) on disposal of long term equity investments
(16,501)
(5,543)
Fair value (gain)/loss on revaluation of trading equities
(5,140)
6,018
Loss on disposal of unlisted investments
–
2,135
Net (gain) on sale of held for sale assets
–
(1,151)
Net (gain) on disposal of investment properties
–
(4,991)
Share of (profits) of associates not received as dividends or distributions
(48,393)
(27,815)
Net foreign exchange (gain)
(2,107)
(2,881)
Fair value loss on initial recognition of an equity accounted associate
1,682
–
Revaluation of interest rate swap
–
2,112
(Gains) on deemed disposal of equity accounted associates
(118,850)
(2,076)
(Gain) on sale of equity accounted associate
(2,127)
–
Other non-cash items
(27)
(331)
Changes in operating assets and liabilities,
net of effects from purchase and sales of businesses:
(Increase)/decrease in trade debtors, other debtors and prepayments
(61,906)
19,832
(Increase)/decrease in inventory
(6,169)
89
Increase/(decrease) in trade creditors and accruals
66,503
(21,350)
(Decrease)/increase in employee entitlements, other liabilities and provisions
(1,238)
2,627
Decrease in current tax asset
1,486
3,693
(Decrease)/increase in current tax payable
(3,226)
4,842
(Decrease) in deferred tax liability
(13,004)
(12,798)
Decrease/(increase) in deferred tax asset
3,233
(21,826)
Net cash inflow from operating activities
119,827
222,690