Consolidated Statement of Cash Flows

Reference

Cash Flow Statement

PwC Holdings Ltd and its Subsidiaries

For the nancial year ended 31 December 2010

Note 2010 2009 FRS 7(1)

$’000 $’000 SGX 1207(5)(c)

Cash ows from operating activities

FRS 7(10,18(b))

Total prot 31,976 18,020

Adjustments for FRS 7(20)(b-c)

- Income tax expense 14,958 7,531

- Employee share option expense 690 622

- Amortisation, depreciation and impairment

23,204 10,097

- Gain on disposal of property, plant and equipment (17) (8)

- Impairment loss on nancial assets, available-for-sale 575 –

- Net gain on disposal of nancial assets, available-for-sale (200) –

- Reclassication adjustments from hedging reserve to prot or loss (230) (354)

- Loss on disposal of a subsidiary 945 –

- Fair value loss/(gain) on investment property 123 (50)

- Interest income

(1,180) (620) FRS 7(31-34)

- Dividend income

(2,230) (400) FRS 7(31-34)

- Finance expenses

9,812 7,884 FRS 7(31-34)

- Share of loss/(prot) of associated companies 174 (145)

- Unrealised currency translation (gains)/losses

970 1,001 FRS 7(25,26)

79,570 43,578

Change in working capital, net of effects from FRS 7(20)(a)

acquisition and disposal of subsidiaries

- Inventories and construction work-in-progress (7,887) 1,031

- Trade and other receivables (6,986) 1,117

- Financial assets, at fair value through prot or loss (2,651) (500)

- Trade and other payables (8,527) 526

- Provisions for liabilities and other charges (308) 39

Cash generated from operations

53,211 45,791

Interest received

35 13 FRS 7(31)

Interest paid

(5,789) (9,574) FRS 7(31)

Income tax paid (15,504) (10,974) FRS 7(35)

Net cash provided by operating activities 31,953 25,256

Cash ows from investing activities FRS 7(21)

Acquisition of a subsidiary, net of cash acquired 47 (13,400) – FRS 7(39,42)

Additions to property, plant and equipment

(9,565) (6,042) FRS 7(16(a),43)

Additions to investment property (288) (2,040)

Additions of intangible assets (2,813) (700) FRS 7(16)(a)

Purchases of nancial assets, available-for-sale (3,956) (691) FRS 7(16)(c)

Purchases of nancial assets, held-to-maturity (472) (372) FRS 7(16)(c)

Disposal of a subsidiary, net of cash disposed of 13 179 – FRS 7(39,42)

Disposal of property, plant and equipment 4,974 2,995 FRS 7(16)(b)

Disposal of investment property 70 –

Disposal of nancial assets, available-for-sale 300 – FRS 7(16)(d)

Loans to an associated company (1,455) (547) FRS 7(16)(e)

Repayment of loans by an associated company 63 98 FRS 7(16)(f)

Dividends received

2,230 396 FRS 7(31)

Interest

received

2,290 346 FRS 7(31)

Net cash used in investing activities (21,843) (6,557)

Illustrative Annual Report 2010

Reference

PwC Holdings Ltd and its Subsidiaries

Consolidated Statement of Cash Flows

For the nancial year ended 31 December 2010

Note 2010 2009

$’000 $’000

Cash ows from nancing activities FRS 7(21)

Proceeds from issuance of ordinary shares 9,471 – FRS 7(17)(a)

Proceeds from re-issuance of treasury shares 982 – FRS 7(17)(a)

Proceeds from issuance of convertible bond 50,000 – FRS 7(17)(a,c)

Proceeds from issuance of redeemable preference

shares to immediate holding corporation – 30,000

FRS 7(17)(c)

Proceeds from borrowings 8,500 18,000 FRS 7(17)(c)

Purchase of treasury shares (2,072) (900) FRS 7(17)(b)

Repayment of borrowings (71,434) (36,745) FRS 7(17)(d)

Repayment of lease liabilities (165) (93) FRS 7(17)(e)

Interest

(3,180) (450) FRS 7(31)

Dividends paid to equity holders of the Company (10,102) (15,736) FRS 7(31)

Dividends paid to non-controlling interests (1,920) (550) FRS 7(31)

Net cash used in nancing activities (19,920) (6,474)

Net (decrease)/increase in cash and cash equivalents (9,810) 12,225

Cash and cash equivalents

Beginning of nancial year 13 29,548 17,387 FRS 7(45)

Effects of currency translation on cash and cash equivalents

(578) (64) FRS 7(28)

End of nancial year 13 19,160 29,548 FRS 7(45)

Cash Flow Statement

Reference

Cash Flow Statement

PwC Holdings Ltd and its Subsidiaries

Consolidated Statement of Cash Flows

For the nancial year ended 31 December 2010

Guidance notes

Consolidated Statement Of Cash Flows

Direct method

1. An entity can present its cash ow statement using the direct or indirect method; the latter is

illustrated in this publication. When the direct method is used, the cash ows from operating

activities shall be presented as follows:

2010 2009

$’000 $’000

Cash ows from operating activities

Cash receipts from customers 205,483 143,507

Cash paid to suppliers and employees (152,272) (97,716)

Cash generated from operations 53,211 45,791

Interest received 35 13

Interest paid (5,789) (9,574)

Income taxes paid (15,504) (10,974)

Net cash provided by operating activities 31,953 25,256

The rest of the “direct method” consolidated cash ow statement is similar to that of the indirect

method.

Discontinued operations

2. Non-cash items excluded from prot for purposes of the cash ow statement should include

those non-cash items attributed to discontinued operations.

Dividends and interest

3. Cash ows from interest received and paid and dividends received shall each be disclosed

separately, and classied consistently period to period.

The interest amounts to be adjusted against prot after tax are the amounts charged or credited

to prot or loss. The amounts to be shown under nancing or investing cash ows shall be strictly

cash paid or received during the period; differences will be reected in the changes in operating

assets and liabilities or as additions to qualifying assets if interest has been capitalised in the cost

of these assets.

Additions to property, plant and equipment

4. Additions to property, plant and equipment in the cash ow statement should be net of hedging

gains/losses transferred from hedging reserve.

Reconciliation from prot after tax to cash generated from operations

5. As an alternative, an entity can present the reconciliation in the notes to the nancial statements.

Currency translation differences

6. The adjustment of total prot for unrealised currency translation (gains)/losses usually includes

currency translation differences on monetary items that form part of investing or nancing activities

such as long terms loans. This is because these currency translation differences are included as

a part of prot or loss for the nancial year and need to be eliminated in arriving at the net cash

ows from operating activities, as they do not relate to operating activities.

On the other hand, unrealised currency translation differences on monetary items that form

part of operating activities, such as trade receivables or payables, do not usually require such

adjustment, as they are already adjusted through the change in working capital lines.

7. Currency translation differences that arise on the translation of foreign currency cash and cash

equivalents should be reported in the statement of cash ows in order to reconcile opening and

closing balances of cash and cash equivalents, separately from operating, nancing and investing

cash ows.

FRS 7(18)(a)

FRS 7 App A

FRS 7(19)

FRS 7(31-34)

FRS 7(28)