NOTES TO THE CASH FLOW STATEMENT

The cash flow statement has been prepared using the indirect method. The cash items disclosed in the cash flow statement are comprised of cash and cash equivalents and there are no deposits or other investments. Cash flows in foreign currencies have been converted at the applicable exchange rate. Exchange differences affecting cash items are shown separately in the cash flow statement. Interest paid and received is included in cash from operating activities. Since War Child does not invest nor speculate and has no financial leases, cash from financing activities is zero. Transactions not resulting in inflow or outflow of cash are not recognised in the cash flow statement. 

The cash and cash equivalents have slightly decreased in 2017 (- 2 per cent). War Child’s cash and cash equivalents balance is healthy with €21.2 million cash available and €3.7 million short term receivables, against €17.4 million short term liabilities. War Child’s bank balance can be explained by the grants received in advance from important donors and foundations, such as the National Postcode Lottery, the IKEA Foundation and the Netherlands government. The projects related to these subsidies are partly to be implemented in 2018 and beyond. For more information, see the notes to the balance sheet item 'Grants Received in Advance'.