2022 AVBOB Integrated Annual Report - FINANCIALS

CHAPTER 8 | FINANCIAL STATEMENTS 128 INTEGRATED ANNUAL REPORT 2022 AVBOB MUTUAL ASSURANCE SOCIETY AND ITS SUBSIDIARIES NOTES TO THE SUMMARISED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2022 (continued) 23. RESTATEMENT - CLASSIFICATION OF INTERST EXPENSE BETWEEN CASH GENERATED BY OPERATING ACTIVITIES AND MOVEMENT OF FINANCIAL LIABILITY AT AMORTISED COST 2021 2021 Previous Adjustment Restated R 000 R 000 R 000 SOCIETY Statement of cash flows Cash generated by operating activities 762 917 146 270 909 187 Movement in financial liabilities 2 829 277 (2 829 277) - At amortised cost Additions - 2 826 864 2 826 864 Withdrawals - ( 143 857) (143 857) GROUP Statement of cash flows Cash generated by operating activities 945 976 146 270 1 092 246 Movement in financial liabilities 2 829 277 (2 829 277) - At amortised cost Additions - 2 826 864 2 826 864 Withdrawals - ( 143 857) (143 857) The interest expense and the cash flow movement of the financial liability at amortised cost was not disclosed correctly in the cash flow statement in the prior year. The interest expenses was not disclosed as a non-cash flow item and the movement of the liability was disclosed as a net movement and was not grossed into the separate cash flow components. The reclassification adjustment has an impact on the statement of cash flows only. The reclassification adjustment had no impact on profit before transfer to policyholder liabilities or net income tax expense.