34. Cash and cash equivalents
34.a. Reconciliation to cash flow statement
Cash and cash equivalents at the end of the reporting period as shown in the Consolidated Statement of Cash Flows can be reconciled to the related items in the Consolidated Statement of Financial Position as follows:
2020 | 2019 | |
|---|---|---|
Cash at bank and on hand | 100 | 99 |
Short-term deposits | 41 | 16 |
Total cash and cash equivalents | 141 | 115 |
34.b. Reconciliation of profit for the year to net cash flows from operating activities
2020 | 2019 | |
|---|---|---|
Profit for the year | 1,015 | 905 |
Share of profits of associates and joint ventures | (17) | (33) |
Dividends received from joint ventures | 15 | 27 |
Depreciation and amortisation | 753 | 625 |
Share-based payment expense | 9 | 6 |
(Gain)/loss in fair value of financial instruments | (308) | 198 |
Net gain on disposal of subsidiaries and businesses | - | (52) |
Loss on disposal of assets on exit of business | - | 47 |
Loss on disposal of joint operation | - | 2 |
Net gain/(loss) on disposal of property, plant and equipment | 9 | (2) |
Non-cash finance costs | 64 | 61 |
Capitalised finance costs | (9) | (21) |
Impairment of investments in associates | 14 | - |
Other non-cash expenses | 6 | - |
Changes in assets and liabilities | ||
Decrease in trade and other receivables | 137 | 72 |
Increase in inventories | (14) | (74) |
(Increase)/decrease in derivative financial instruments | (3) | 17 |
Decrease/(increase) in other financial assets | 471 | (187) |
Decrease/(increase) in other assets | 39 | (9) |
Decrease in trade and other payables | (196) | (12) |
Decrease in provisions | (31) | (81) |
Increase/(decrease) in other liabilities | 25 | (1) |
Decrease in tax assets and liabilities | 177 | 111 |
Net cash provided by operating activities | 2,156 | 1,599 |
34.c. Reconciliation of changes in liabilities arising from financing activities
Year ended 30 June 2020 | Balance at beginning of financial year | Net | Non-cash movements | Balance at |
|---|---|---|---|---|
Liabilities arising from financing activities | ||||
USD senior notes | 1,054 | - | 110 | 1,164 |
Medium term notes | 599 | - | - | 599 |
Bank loans | 820 | 165 | - | 985 |
CPI bonds | 81 | (6) | - | 75 |
Other loans | 133 | (11) | - | 122 |
Lease liabilities | 172 | (17) | 19 | 174 |
Deferred transaction costs | (9) | (5) | 3 | (11) |
2,850 | 126 | 132 | 3,108 |
- 1 Excludes $32 million of repayment made on Perth Energy's external bank loans on the date of acquisition.
Year ended 30 June 2019 | Balance at beginning of financial year | Net | Non-cash movements | Balance at |
|---|---|---|---|---|
Liabilities arising from financing activities | ||||
USD senior notes | 931 | - | 123 | 1,054 |
Subordinated notes | 650 | (650) | - | - |
Medium term notes | 598 | - | 1 | 599 |
Bank loans | 410 | 410 | - | 820 |
CPI bonds | 88 | (7) | - | 81 |
Other loans | 144 | (11) | - | 133 |
Lease liabilities | 154 | (5) | 23 | 172 |
Deferred transaction costs | (12) | (1) | 4 | (9) |
2,963 | (264) | 151 | 2,850 |
ACCOUNTING POLICY
Cash and cash equivalents
Cash and cash equivalents comprise cash at bank and on hand and short-term deposits with an original maturity of three months or less that are readily convertible to known amounts of cash. The carrying amount represents fair value.
For the purposes of the Consolidated Statement of Cash Flows, cash and cash equivalents consist of cash and cash equivalents as defined above net of outstanding bank overdrafts and accounts relating to dividend payments held in escrow.