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Accounting principles for preparation of the consolidated cash flow statement

 

Part of Consolidated financial statements - Notes to the consolidated financial statements

The cash flow statement is prepared using the direct method.

Cash flow from business activities has been derived from the consolidated profit-and-loss account, adjusted for changes of balance positions of receivables and payables.

Cash consists of the balance of cash and cash equivalents and short-term debts to banks. Tax on profits, interest received and paid, and dividends received are included under cash flow from operating activities.

The acquisition cost for acquired group companies is included under cash flow from investment activities. Existing cash funds in these group companies are deducted from the acquisition cost.