UNDERSTANDING THE FINANCIAL STATEMENTS REQUIRED BY IAS1. A Accoun,ng and Financial Repor,ng

Transcription

1 UNDERSTANDING THE FINANCIAL STATEMENTS REQUIRED BY IAS1 1

2 Understanding the Financial Statements Required by IAS 1 Statement of profit or loss and other comprehensive income Statement of financial posi,on Statement of changes in equity Statement of cash flows Notes to the financial statements 2

3 General Requirements for Financial statements IAS 1 Fair presenta,on and compliance with IFRSs Going concern Accrual basis of accoun,ng Materiality and aggrega,on OffseNng Frequency of repor,ng Compara,ve informa,on Consistency of presenta,on 3

4 The Articulation of the Financial Statements Cash Flow Statement Cash from opera,ons Beginning Balance Sheet Cash Cash from inves,ng Cash from financing Net change in cash Ending Balance Sheet Cash + Other Assets Total Assets - Liabili,es Owners equity Statement of Shareholders Equity Investment and disinvestment by owners Net income and other earnings Net change in owners equity + Other Assets Total Assets - Liabili,es Owners equity Income Statement Source: Stephan H. Penman Columbia University Revenues Expenses Net income Clinic I-4

5 Commentary The Statement of Profit or Loss and Other Comprehensive Income Appendix 1 Consolidated statement of profit or loss and other comprehensive income (example of a single statement) for the year ended 31 December 2013 IAS 1.49 The Group presents the statement of profit or loss in two separate statements. For illustrative purposes, the statement of profit or loss is presented as a single statement of comprehensive income in this appendix. IAS 1.10(b) IAS 1.51(c) Restated* IAS 8.28 Notes IAS 1.51(d),(e) Continuing operations Sale of goods 161, ,551 IAS 18.35(b)(i) Rendering of services 17,131 16,537 IAS 18.35(b)(ii) Rental income 17 1,404 1,377 IAS 18.35(b)(ii) Revenue 180, ,465 IAS 1.82(a) Cost of sales (136,448) (128,533) IAS Gross profit 44,014 33,932 IAS 1.85 Other operating income ,585 2,548 IAS Selling and distribution expenses (14,001) (12,964) IAS Administrative expenses (18,428) (12,156) IAS Other operating expenses 12.2 (1,153) (706) IAS Operating profit 12,017 10,654 IAS 1.85 Finance costs 12.3 (2,766) (1,123) IAS 1 BC IAS 1.82(b) IFRS 7.20 Finance income , IAS 1.82(a) Share of profit of an associate and a joint venture 9, IAS 1.82(c) Profit before tax from continuing operations 11,108 10,380 IAS 1.85 Income tax expense 14 (3,098) (2,683) IAS 1.82(d) IAS Profit for the year from continuing operations 8,010 7,697 IAS 1.85 Profit or loss + Other comprehensive income = Comprehensive income Discontinued operations Profit/(loss) after tax for the year from discontinued IAS 1.82(ea) operations (188) IFRS 5.33(a) Profit for the year 8,230 7,509 IAS 1.81A(a) Other comprehensive income IAS 1.81A(b) Other comprehensive income to be reclassified to profit or loss IAS 1.82A in subsequent periods: Net gain on hedge of net investment 278 IAS (a) Exchange differences on translation of foreign operations (246) (117) IAS Net movement of cash flow hedges 12.8 (732) 33 IFRS 7.23(c) Net (losses)/gains on available-for-sale financial assets 12.8 (58) 3 Other comprehensive income not to be reclassified to profit or loss in subsequent periods: Re-measurement gains/(losses) on defined benefit plans (389) Revaluation of land and buildings IAS (c) Income tax relating to the components of OCI 14 (211) 106 IAS 1.90 Other comprehensive income for the year, net of tax 246 (364) IAS 1.81A(b) Total comprehensive income for the year, net of tax 8,476 7,145 IAS 1.81A(c) * Certain numbers shown here do not correspond to those in the 2012 financial statements and reflect adjustments made as detailed in Note 2.4. Companies can choose to present either a single statement or two separate statements 126 Good Group (International) Limited 5

6 The Profit and Loss Account By Des,na,on Consolidated statement of profit or loss for the year ended 31 December IAS 1.49 IAS 1.10(b) IAS 1.10A IAS 1.51((c) Restated* IAS 8.28 Notes IAS 1.51(d),(e) Continuing operations IAS 1.81A Sale of goods 161, ,551 IAS 18.35(b)(i) Rendering of services 17,131 16,537 IAS 18.35(b)(ii) Rental income 17 1,404 1,377 IAS 18.35(b)(ii) Revenue 180, ,465 IAS 1.82(a) Cost of sales (136,448) (128,533) IAS Gross profit 44,014 33,932 IAS 1.85, IAS Two alterna,ve presenta,ons By Nature Appendix 2 Consolidated statement of profit or loss (example of expenses disclosed by nature) for the year ended 31 December 2013 Commentary The Group presents the statement of profit or loss disclosing expenses by function. For illustrative purposes, the statement of profit or loss disclosing expenses by nature is presented in this appendix. IAS 1.10(b) IAS 1.51(c) Restated* Notes IAS 1.51(d)(e) Continuing operations Sale of goods 161, ,551 IAS 18.35(b)(i) Rendering of services 17,131 16,537 IAS 18.35(b)(ii) Rental income 17 1,404 1,377 IAS 18.35(b)(ii) Revenue 180, ,465 IAS 1.82(a) Other operating income ,585 2,548 IAS Selling and distribution expenses (14,001) (12,964) IAS Administrative expenses (18,428) (12,156) IAS Other operating expenses 12.2 (1,153) (706) IAS Operating profit 12,017 10,654 IAS 1.85, IAS 1.BC55-56 Finance costs 12.3 (2,766) (1,123) IAS 1.82(b), IFRS 7.20 Finance income , IAS 1.82(a) Share of profit of an associate and a joint venture 9, IAS 1.82(c) Profit before tax from continuing operations 11,108 10,380 IAS 1.85 Income tax expense 14 (3,098) (2,683) IAS 1.82(d), IAS Profit for the year from continuing operations 8,010 7,697 IAS 1.85 Discontinued operations Profit/(loss) after tax for the year from IAS 1.82 (ea), IFRS discontinued operations (188) 5.33(a) Profit for the year 8,230 7,509 IAS 1.81A (a) Attributable to: Equity holders of the parent 7,942 7,270 IAS 1.81B (a) (ii) Non-controlling interests IAS 1.81B (a)(i) 8,230 7,509 Earnings per share 15 IAS Basic, profit for the year attributable to ordinary equity holders of the parent Diluted, profit for the year attributable to ordinary equity holders of the parent Earnings per share for continuing operations Basic, profit from continuing operations attributable to ordinary equity holders of the parent Diluted, profit from continuing operations attributable to ordinary equity holders of the parent Other operating income ,585 2,548 IAS Changes in inventories of finished goods and work in progress (1,133) (3,842) IAS Raw materials and consumables used (127,739) (111,051) IAS Employee benefits expense 12.6 (35,880) (35,153) IAS Depreciation and amortisation (3,922) (3,306) IAS Impairment of non-current assets 13,19 (200) (301) Other expenses 12.2 (1,153) (706) IAS Finance costs 12.3 (2,766) (1,123) IAS 1.82(b) Finance income , IAS 1.82(a) Share of profit of an associate and a joint venture 9, IAS 1.82(c) Profit before tax from continuing operations 11,108 10,380 IAS 1.85 Income tax expense 14 (3,098) IAS 1.82(d) (2,683) IAS Profit for the year from continuing operations 8,010 7,697 IAS 1.85 Discontinued operations Profit/(loss) after tax for the year from discontinued operations IAS 1.82(ea) (188) IFRS 5.33(a) IAS 1.81A(a) Profit for the year 8,230 7,509 Attributable to: Equity holders of the parent 7,942 7,270 IAS 1.81B(a)(ii) Non-controlling interests IAS 1.81B(a)(i) 8,230 7,509 Earnings per share 15 IAS Basic profit for the year attributable to ordinary equity holders of the parent Diluted profit for the year attributable to ordinary equity holders of the parent Earnings per share for continuing operations Basic profit from continuing operations attributable to ordinary equity holders of the parent Diluted profit from continuing operations attributable to ordinary equity holders of the parent * Certain numbers shown here do not correspond to those in the 2012 financial statements and reflect adjustments made as detailed in Note 2.4. * Certain amounts shown here do not correspond to the 2012 financial statements and reflect adjustments made, refer Note 2.4. Reconcilia,on between the two methods Worksheet 6 Good Group (International) Limited Good Group (International) Limited

7 Other Comprehensive Income Consolidated statement of other comprehensive income for the year ended 31 December 2013 IAS 1.51(c) IAS 1.81A IAS 1.10(b) Restated* IAS 8.28 Notes IAS 1.51(d),(e) IAS 1.90 IAS 12.61A 8,230 7,509 IAS 1.81A (a) Profit for the year Other comprehensive income IAS 1.82A Other comprehensive income to be reclassified to profit or loss in IAS 1.82A subsequent periods: Net gain on hedge of a net investment 278 IAS (a) Income tax effect (83) 195 Exchange differences on translation of foreign operations (246) (117) IAS IAS Income tax effect (246) (117) Net movement on cash flow hedges 12.8 (732) 33 IFRS 7.23(c) Income tax effect 220 (9) (512) 24 Net (loss)/gain on available-for-sale financial assets 12.8 (58) 3 IFRS 7.20(a)(ii) Income tax effect 18 (1) (40) 2 Net other comprehensive income to be reclassified to profit or IAS 1.82A loss in subsequent periods (603) (91) Other comprehensive income not to be reclassified to profit or loss IAS 1.90 in subsequent periods: IAS (c) IAS Re-measurement gains (losses) on defined benefit plans (389) Income tax effect (112) (273) Revaluation of land and buildings IAS Income tax effect (254) 592 Net other comprehensive income not to be reclassified to profit IAS 1.82A or loss in subsequent periods 849 (273) Other comprehensive income for the year, net of tax 246 (364) IAS 1.81A(b) Total comprehensive income for the year, net of tax 8,476 7,145 IAS 1.81A (c) Attributable to: Equity holders of the parent 8,188 6,906 IAS 1.81B (b) (ii) Non-controlling interests IAS 1.81B (b) (i) 8,476 7,145 * Certain amounts shown here do not correspond to the 2012 financial statements and reflect adjustments made, refer Note 2.4. Items not included in profit and loss such as: Changes in revalua,on surplus rela,ng to property, plant and equipment and intangible assets Actuarial profits and losses on defined benefit plans Gains and losses arising from transla,ng the financial statements of a foreign opera,on Gains and losses on re- measuring available- for sale financial assets The effec,ve por,on of gains and losses on hedging instruments in a cash flow hedge Good Group (International) Limited 13 7

8 The Statement of Financial Current/Non- Current Dis,nc,on Consolidated statement of financial position as at 31 December 2013 IAS 1.10(a) As at IAS 1.10(f) January 2012 IAS 1.51(c) Restated* Restated* IAS 8.28 Notes IAS 1.51(d,)(e) Assets IAS 1.40A, IAS 1.40B Non-current assets IAS 1.60, IAS 1.66 Property, plant and equipment 16 32,979 24,329 18,940 IAS 1.54(a) Investment properties 17 8,893 7,983 7,091 IAS 1.54(b) Intangible assets 18 6,019 2,461 2,114 IAS 1.54(c) Investment in an associate and a joint venture 9,10 3,187 2,516 1,878 IAS 1.54(e), IAS Non-current financial assets 20 6,425 3,491 3,269 IAS 1.54(d), IFRS 7.8 Deferred tax assets IAS 1.54(o), IAS ,886 41,145 33,613 Current assets IAS 1.60 Inventories 21 23,262 24,085 26,063 IAS 1.54(g) Trade and other receivables 22 27,672 24,290 25,537 IAS 1.54(h) Prepayments IAS 1.55 Other current financial assets IAS 1.54(d), IFRS 7.8 Cash and short-term deposits 23 17,112 14,916 11,066 IAS 1.54(i) 68,841 63,609 63,029 Assets classified as held for distribution 13 13,554 IAS 1.54(j), IFRS ,395 63,609 63,029 Total assets 140, ,754 96,642 Equity and liabilities Equity IAS 1.54(r) Issued capital 24 21,888 19,388 19,388 IAS 1.54(r), IAS 1.78(e) Share premium 24 4, IAS 1.54(r), IAS 1.78(e) Treasury shares 24 (508) (654) (774) IAS 1.54(r), IAS 1.78(e) Other capital reserves 24 1, IAS 1.54(r), IAS 1.78(e) Retained earnings 35,052 28,935 23,538 IAS 1.54(r), IAS 1.78(e) Other components of equity (649) (512) (421) IAS 1.54(r), IAS 1.78(e) Non-cash distribution liability 25 (410) Reserves of a disposal group classified as held for distribution Equity attributable to equity holders of the parent 61,370 48,101 42,297 Non-controlling interests 2, IAS 1.54(q) Total equity 63,780 48,841 42,505 Non-current liabilities IAS 1.60 Interest-bearing loans and borrowings 20 20,346 21,703 19,574 IAS 1.54(m) Other non-current financial liabilities IAS 1.54(m), IFRS 7.8 Provisions 26 1, IAS 1.54(l) Government grants 27 3,300 1, IAS Deferred revenue IAS 1.55 Net employee defined benefit liabilities 29 3,050 2,977 2,526 IAS 1.55, IAS 1.78(d) Other liabilities IAS 1.55 Deferred tax liabilities 14 2,931 1,089 1,083 IAS 1.54(o), IAS ,842 27,643 24,424 Current liabilities IAS 1.60, IAS 1.69 Trade and other payables 31 19,444 20,730 19,850 IAS 1.54(k) Interest-bearing loans and borrowings 20 2,460 2,775 4,555 IAS 1.54(m), IFRS 7.8(f) Other current financial liabilities 20 3, IAS 1.54(m), IFRS 7.8 Government grants IAS 1.55, IAS Deferred revenue IAS 1.55 Income tax payable 3,961 4,013 4,625 IAS 1.54(n) Provisions IAS 1.54(l) Non-cash distribution liability ,534 28,270 29,713 Liabilities directly associated with the assets classified as held for distribution 13 13,125 IAS 1.54(p), IFRS ,659 28,270 29,713 Total liabilities 76,501 55,913 54,137 Total equity and liabilities 140, ,754 96,642 * Certain amounts shown here do not correspond to the 2012 financial statements and reflect adjustments made, refer Notes 2.4 and 7. Posi,on Excep,onally, in order of liquidity HSBC HOLDINGS PLC Financial Statements (continued) Consolidated balance sheet / Consolidated statement of cash flows Consolidated balance sheet at 31 December Notes US$m US$m Assets Cash and balances at central banks , ,902 Items in the course of collection from other banks... 7,303 8,208 Hong Kong Government certificates of indebtedness... 22,743 20,922 Trading assets , ,451 Financial assets designated at fair value ,582 30,856 Derivatives , ,379 Loans and advances to banks , ,987 Loans and advances to customers , ,429 Financial investments , ,044 Assets held for sale ,269 39,558 Other assets ,716 48,699 Current tax assets ,061 Prepayments and accrued income... 9,502 10,059 Interests in associates and joint ventures ,834 20,399 Goodwill and intangible assets ,853 29,034 Property, plant and equipment ,588 10,865 Deferred tax assets ,570 7,726 Total assets... 2,692,538 2,555,579 Liabilities and equity Liabilities Hong Kong currency notes in circulation... 22,742 20,922 Deposits by banks , ,822 Customer accounts... 1,340,014 1,253,925 Items in the course of transmission to other banks... 7,138 8,745 Trading liabilities , ,192 Financial liabilities designated at fair value ,720 85,724 Derivatives , ,380 Debt securities in issue , ,013 Liabilities of disposal groups held for sale ,018 22,200 Other liabilities ,862 27,967 Current tax liabilities... 1,452 2,117 Liabilities under insurance contracts ,195 61,259 Accruals and deferred income... 13,184 13,106 Provisions ,252 3,324 Deferred tax liabilities ,109 1,518 Retirement benefit liabilities ,905 3,666 Subordinated liabilities ,479 30,606 Total liabilities... 2,509,409 2,389,486 Equity Called up share capital ,238 8,934 Share premium account... 10,084 8,457 Other equity instruments... 5,851 5,851 Other reserves... 29,722 23,615 Retained earnings , ,868 Total shareholders equity , ,725 Non-controlling interests ,887 7,368 Total equity , ,093 Total equity and liabilities... 2,692,538 2,555,579 The accompanying notes on pages 383 to 515 form an integral part of these financial statements 1. For footnote, see page 382. Good Group (International) Limited 15 D J Flint, Group Chairman 374 8

9 Currents Assets When an asset sa,sfies any of the following criteria: 1. It expects to realize the asset or intends to sell it or consume it in the en,ty s normal opera,ng cycle 2. It holds the asset primarily for the purposes of trading 3. It expects to realize the asset within twelve months ader the end of the repor,ng period 4. The asset is cash or a cash equivalent unless it is restricted for at least 12 months. 9

10 Current Liabili,es When a liability sa,sfies any of the following criteria: 1. It is expected to be sefled in the en,ty s normal opera,ng cycle 2. It is held primarily for the purposes of trading 3. It is due to be sefled within twelve months ader the end of the repor,ng period 4. The en,ty does not have an uncondi,onal right to defer seflement of the liability for at least twelve months ader the end of the repor,ng period 10

11 Statement of Changes in Equity Consolidated statement of changes in equity for the year ended 31 December 2013 Issued capital (Note 24) Share premium (Note 24) Treasury shares (Note 24) Attributable to the equity holders of the parent Other Foreign capital Cash flow Availablefor-sale currency reserves Retained hedge translation (Note 24) earnings reserve reserve reserve Asset revaluation reserve Discontinued operations Total Noncontrolling interests IAS 1.51(d),(e) As at 1 January , (654) ,935 (70) 2 (444) 48, ,841 Profit for the period 7,942 7, ,230 IAS 1.106(d)(i) Other comprehensive income (Note 24) 257 (512) (40) (51) IAS 1.106(d)(ii) Total comprehensive income 8,199 (512) (40) (51) 592 8, ,476 IAS 1.106(a) Depreciation transfer for land and buildings 80 (80) IAS 1.96 Discontinued operations (Note 13) (46) 46 IFRS 5.38 Issue of share capital (Note 24) 2,500 4,703 7,203 7,203 IAS 1.106(d)(iii) Exercise of options (Note 24) IAS 1.106(d)(iii) Share-based payments (Note 30) IAS 1.106(d)(iii) IFRS 2.50 Transaction costs (Note 7) (32) (32) (32) IAS 32.39,IAS Cash dividends (Note 25) (1,972) (1,972) (30) (2,002) IAS Non-cash distributions to owners (Note 25) (410) (410) (410) Acquisition of a subsidiary (Note 7) 1,547 1,547 IAS 1.106(d)(iii) Acquisition of non-controlling interests (Note 7) (190) (190) (135) (325) IAS 1.106(d)(iii) At 31 December ,888 4,780 (508) 1,171 34,642 (582) (84) (495) ,370 2,410 63,780 Total equity IAS 1.10(c) IAS 1.51(c) IAS 1.106(d) Commentary Shows the changes in net assets between two balance sheet dates and reconciles For equity-settled share-based payment transactions, IFRS 2.7 requires entities to recognise an increase in equity when goods or services are received. However, IFRS 2 does not specify where in equity this should be recognised. The Group has chosen to recognise the credit in other capital reserves. The Group provided treasury shares to employees exercising share options and elected to recognise the excess of cash received over the acquisition cost of those treasury shares in share premium. In some jurisdictions, it is common to transfer other capital reserves to share premium or retained earnings each component. when the share options are exercised or expire. The Group has elected to continue to present other capital reserves separately. Profit or loss Other comprehensive income Transac,ons with owners (equity contribu,ons, dividends, purchase of own shares) The acquisition of an additional ownership interest in a subsidiary without a change of control is accounted for as an equity transaction in accordance with IFRS 10. Any excess or deficit of consideration paid over the carrying amount of the non-controlling interests is recognised in equity of the parent in transactions where the non-controlling interests are acquired or sold without loss of control. The Group has elected to recognise this effect in retained earnings. With respect to the subsidiary to which these non-controlling interests relate, there were no accumulated components recognised in OCI. If there had been such components, those would have been reallocated within equity of the parent (e.g., foreign currency translation reserve or available-for-sale reserve). IFRS 5.38 requires items recognised in OCI related to a discontinued operation to be separately disclosed. The Group presents this effect in the statement of changes in equity above. However, presentation of such items within discontinued operations does not change the nature of the reserve. Reclassification to profit or loss will only occur if and when required by IFRS. The Group recognises re-measurement gains and losses arising on defined benefit pension plans in OCI. As they will never be reclassified into profit or loss, they are immediately recorded in retained earnings (refer to the statement of comprehensive income). IAS 19 (Revised 2011) does not require separate presentation of those components in the statement of changes in equity. 17 Good Group (International) Limited 11

12 Statement of Cash Flows Indirect Method Consolidated statement of cash flows for the year ended 31 December 2013 IAS 1.49 IAS 1.51(c) IAS 1.10(d) Restated* Notes IAS 1.51(d),(e) Operating activities IAS 7.10, IAS 7.18(b) Profit before tax from continuing operations 11,108 10,380 Profit/(loss) before tax from discontinued operations (193) Profit before tax 11,321 10,187 Adjustments to reconcile profit before tax to net cash flows: IAS 7.20(b) Depreciation and impairment of property, plant and equipment 16 3,907 3,383 Amortisation and impairment of intangible assets Contribution of property, plant and equipment by customers 16 (190) (150) Share-based payment expense Decrease in investment properties Gain on disposal of property, plant and equipment 12.1 (532) (2,007) Fair value adjustment of a contingent consideration Finance income 12.4 (1,186) (211) IAS 7.20(c) Finance costs ,766 1,123 IAS 7.20(c) Share of profit of an associate and a joint venture 9,10 (671) (638) Movements in provisions, pensions and government grants (732) 202 Working capital adjustments: IAS 7.20(a) Increase in trade and other receivables and prepayments (9,265) (3,240) Decrease in inventories 4,192 2,405 Increase in trade and other payables 4,095 4,246 15,106 16,266 Interest received IAS 7.31 Interest paid (484) (1,026) IAS 7.31 Income tax paid (3,131) (3,200) IAS 7.35 Net cash flows from operating activities 11,827 12,251 Investing activities IAS 7.10, IAS 7.21 Proceeds from sale of property, plant and equipment 1,990 2,319 IAS 7.16(b) Purchase of property, plant and equipment 16 (10,162) (7,672) IAS 7.16(a) Purchase of investment properties 17 (1,216) (1,192) IAS 7.16(a) Purchase of financial instruments (3,054) (225) IAS 7.16(c) Proceeds from sale of financial instruments 145 IAS 7.16(d) Development expenditures 18 (587) (390) IAS 7.16(a) Acquisition of a subsidiary, net of cash acquired (1,450) IAS 7.39 Receipt of government grants 27 2, Net cash flows used in investing activities (9,848) (7,823) Financing activities IAS 7.10, IAS 7.21 Proceeds from exercise of share options IAS 7.17(a) Acquisition of non-controlling interests 7 (325) IAS 7.42A Transaction costs on issue of shares 24 (32) IAS 7.17(a) Payment of finance lease liabilities (51) (76) IAS 7.17(e) Proceeds from borrowings 5,577 2,645 IAS 7.17(c) Repayment of borrowings (122) (1,684) IAS 7.17(d) Dividends paid to equity holders of the parent 25 (1,972) (1,600) IAS 7.31 Dividends paid to non-controlling interests (30) (49) IFRS 12.B10(a) Net cash flows from/(used in) financing activities 3,220 (564) Net increase in cash and cash equivalents 5,199 3,864 Net foreign exchange difference (25) 86 IAS 7.28 Cash and cash equivalents at 1 January 23 12,266 8,316 Direct Method Appendix 3 Consolidated statement of cash flows direct method for the year ended 31 December 2013 Commentary IAS 7.18 allows entities to report cash flows from operating activities using either the direct or indirect methods. The Group presents cash flows using the indirect method. However, the statement of cash flows prepared using the direct method for operating activities is presented in this appendix for illustrative purposes. Operating activities IAS 1.10(d) IAS 1.51(c) IAS 7.10 Notes IAS 1.51(d)(e) Receipts from customers 227, ,778 Payments to suppliers (176,193) (184,463) Payments to employees (35,815) (35,048) IAS 7.18(a) Interest received IAS 7.31 Interest paid (484) (1,025) IAS 7.31 Income tax paid (3,130) (3,200) IAS 7.35 Net cash flows from operating activities 11,827 12,251 Investing activities IAS 7.21 Proceeds from sale of property, plant and equipment 1,990 2,319 IAS 7.16(b) Purchase of property, plant and equipment 16 (10,162) (7,672) IAS 7.16(a) Purchase of investment properties 17 (1,216) (1,192) IAS 7.16(a) Purchase of financial instruments (3,054) (225) IAS 7.16(c) Proceeds from available-for-sale investments 145 Purchase of intangible assets 18 (587) (390) IAS 7.16(a) Acquisition of a subsidiary, net of cash acquired (1,450) IAS 7.39 Receipt of government grants 27 2, Net cash flows used in investing activities (9,848) (7,823) Financing activities IAS 7.21 Proceeds from exercise of share options IAS 7.17(a) Acquisition of non-controlling interests 7 (325) IAS 7.42A Transaction costs of issue of shares 24 (32) Payment of finance lease liabilities (51) (76) IAS 7.17(e) Proceeds from borrowings 5,577 2,645 IAS 7.17(c) Repayment of borrowings (122) (1,684) IAS 7.17(d) Dividends paid to equity holders of the parent 25 (1,972) (1,600) IAS 7.31 Dividends paid to non-controlling interests (30) (49) IAS 7.31 Net cash flows from/(used in) financing activities 3,220 (564) Net increase in cash and cash equivalents 5,199 3,864 Net foreign exchange difference (25) 86 IAS 7.28 Cash and cash equivalents at 1 January 23 12,266 8,316 Cash and cash equivalents at 31 December 23 17,440 12,266 IAS 7.45 Commentary IAS 7.33 permits interest paid to be shown as operating or financing activities and interest received to be shown as operating or investing activities, as deemed relevant for the entity. The Group has elected to classify interest received and paid as cash flows from operating activities. Cash and cash equivalents at 31 December 23 17,440 12,266 IAS 7.45 * Certain amounts shown here do not correspond to the 2012 financial statements and reflect adjustments, refer Note 2.4. Good Group (International) Limited 19 Good Group (International) Limited