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 decreased by €2.8 million in 2020 (decrease by 23 per cent). War Chid’s cash and cash equivalents balance is at a healthy level of €9.2 million in addition to €8.9 million short term receivables, against €11.9 million short term liabilities. War Child’s balance of available resources can be explained by the grants received in advance from important donors and foundations, such as the European Commission, Nationale Postcode Loterij and the Netherlands government. The projects related to these subsidies are partly to be implemented in 2021 and beyond. For more information, see the notes to the balance sheet item 'Grants Received in Advance'.