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Notes to the Statements of Cash Flows

The statement of cash flows shows how cash inflows and outflows during the year affected the cash and cash equivalents (liquidity) of the Bayer Group as of the closing date. The effects of changes in the scope of consolidation are stated separately. Cash flows are classified by operating, investing and financing activities in accordance with IAS 7 (Statement of Cash Flows). The cash and cash equivalents shown in the statement of cash flows comprise cash, checks and balances with banks. Also included are financial instruments with original maturities of up to three months.

The amounts reported by consolidated companies outside the euro zone are translated at average exchange rates for the year, with the exception of cash and cash equivalents, which are translated at closing rates as in the statement of financial position. The effect of changes in exchange rates on cash and cash equivalents is shown separately.

Cash and cash equivalents contain both the proceeds from divestitures of discontinued operations and the cash inflows from these operations prior to the divestitures. In principle, therefore, the statement of cash flows must account for all cash inflows and outflows for both continuing and discontinued operations. However, IFRS 5 (Non-current Assets Held for Sale and Discontinued Operations) specifies that cash flows from operating, investing and financing activities be classified by continuing and discontinued operations. The discontinued operations’ shares of the cash flows from operating, investing and financing activities are stated separately in Note [6.3].

The amounts corresponding to the components of the net operating cash flow are shown both in the statement of financial position and in the income statement. This applies, for example, to the amounts of inventories, receivables and payables recognized in the statement of financial position that determine the changes in working capital shown in the statement of cash flows. The income after taxes forms the starting point for the statement of cash flows.

33. Net cash provided by (used in) operating activities