Lendlease Annual Report 2022

142 Lendlease Annual Report 2022 Notes to Consolidated Financial Statements continued 15. Notes to Statement of Cash Flows June 2022 June 2021 $m $m Reconciliation of Profit after Tax to Net Cash Provided by Operating Activities (Loss)/profit after tax (including external non controlling interests) (99) 222 Amortisation and depreciation 163 207 Net gain on sale of investments, plant and equipment (280) (388) (Reversal)/impairment of equity accounted investments (15) 2 Impairment/(reversal) of inventories 294 (13) Impairment of loans and receivables 2 - Impairment of intangible assets 83 2 Tenancy impairments 129 - Impairment of property, plant and equipment - 7 Net unrealised foreign exchange loss/(gain) and currency hedging costs 31 (38) Net fair value gain on investments (65) (61) Share of profit of equity accounted investments (181) (100) Dividends/distributions from equity accounted investments 68 155 Fair value gain on investment properties (4) (3) Other (58) (41) Net cash provided by operating activities before changes in assets and liabilities 68 (49) Changes in Assets and Liabilities Adjusted for Effects of Purchase and Disposal of Consolidated Entities and Operations During the Financial Year Decrease/(increase) in receivables 11 (1,021) (Increase)/decrease in inventories (426) 1,457 Decrease/(increase) in other assets 17 (26) Increase in net defined benefit plans (54) (80) Decrease in payables (514) (119) Decrease in operating derivatives assets/liabilities 53 40 Increase in deferred tax items (203) (5) Decrease in current tax 58 20 Increase in other provisions 155 251 Net cash provided by operating activities 1 (835) 468 1. Balances include cash flows relating to both continuing and discontinued operations. 16. Borrowings and Financing Arrangements Accounting Policies Borrowings are recognised initially at fair value, net of transaction costs incurred. Borrowings are subsequently measured at amortised cost using the effective interest rate method. Under the amortised cost method the difference between the amount initially recognised and the redemption value is recorded in the Income Statement over the period of the borrowing on an effective interest basis. Borrowings are referred to in this section using their redemption value when describing the terms and conditions. Section C. Liquidity and Working Capital continued