II. Anti-dilution right
On entry by the Company and NICO into the Subscription Agreement, the Company granted NICO a right to maintain, by way of a right
to participate in any issue of shares or to subscribe for shares, its percentage interest in the issued share capital of the Company ('Anti-
dilution Right') in respect of a diluting event which occurs or is announced after 16 June 2015.
C. TREASURY SHARES HELD IN TRUST
Share based remuneration is provided in different forms to eligible employees. To satisfy obligations under the various share based
remuneration plans, shares are generally bought on-market at or near grant date of the relevant arrangement and held in trust. Upon
consolidation of the trusts, the shares held that are controlled for accounting purposes are recognised as treasury shares held in trust,
as described in section AG of the summary of significant accounting policies note. The balance of treasury shares held in trust at a
reporting date represents the cumulative cost of acquiring IAG shares that have not yet been distributed to employees as share based
remuneration.
D. NATURE AND PURPOSE OF RESERVES
I. Foreign currency translation reserve
The foreign currency translation reserve records the foreign currency differences arising from the translation of the financial position
and performance of subsidiaries that have a functional currency other than Australian dollars.
II. Share based remuneration reserve
The share based remuneration reserve is used to recognise the fair value at grant date of equity settled share based remuneration
provided to employees over the vesting period, as described in section AA of the summary of significant accounting policies note.
NOTE 22. NOTES TO THE CASH FLOW STATEMENT
CONSOLIDATED
2015
2014
$m
$m
A. COMPOSITION
Cash held for operational purposes
306
447
Cash and short term money held in investments
1,127
2,554
Other
-
9
Cash and cash equivalents
1,433
3,010
Cash and cash equivalents represent cash on hand and held with banks, deposits at call and short term money held in investments
readily convertible to cash within two working days, net of any bank overdraft. The carrying amount of the cash and cash equivalents
presented on the balance sheet is the same as that used for the purposes of the cash flow statement.
B. SIGNIFICANT RISKS
The net carrying amount of cash and cash equivalents represents the maximum exposure to credit risk relevant to cash and cash
equivalents at reporting date and is equivalent to the fair value of the assets because of the negligible credit risk and frequent
repricing.
A portion of the cash balances is held in currencies other than the Australian dollar. For information regarding the management of
currency risk by the Group refer to the risk management note.
The majority of the amounts bear variable rates of interest. Those balances bearing a fixed rate of interest mature in less than one
year. A small portion of the amounts bears no interest.
CONSOLIDATED
2015
2014
$m
$m
C. RECONCILIATION OF PROFIT/(LOSS) FOR THE YEAR TO NET CASH FLOWS FROM OPERATING ACTIVITIES
Profit/(loss) for the year
830
1,330
I. Non-cash items
Depreciation of property and equipment
67
62
Amortisation and impairment of intangible assets and goodwill
139
49
Impairment of investment in associate
60
-
Net realised (gains) and losses on disposal of investments
(227)
2
Net unrealised (gains) and losses on revaluation of investments
(14)
(296)
Retained earnings adjustment for share based remuneration
28
25
Other
19
(12)
II. Movement in operating assets and liabilities
DECREASE/(INCREASE) IN OPERATING ASSETS
Premium and other receivables
(443)
(248)
Prepayments, deferred levies and charges
(1,097)
(172)
Deferred tax assets
(175)
29
82 IAG ANNUAL REPORT 2015
