SBN HOLDINGS LIMITED Annual Report 2022 slide image

SBN HOLDINGS LIMITED Annual Report 2022

ACCOUNTING POLICY ELECTIONS AND RESTATEMENTS continued 66 GROUP Net interest income Interest income Interest expense Non-interest revenue Total income Credit impairment charges Net income before operating expenses Operating expenses Net income before indirect tax Indirect taxation Profit before direct taxation Direct taxation Profit for the year Attributable to ordinary shareholders Attributable to non-controlling interest Basic and diluted earnings per ordinary share (735 947) 2021 Previously reported N$'000 Restatement N$'000 Restated N$'000 1 236 682 1 972 847 (736 165) (7 370) (7588) 218 1 229 312 1 965 259 1 208 806 1 208 806 2 445 488 (7 370) 2 438 118 (288 751) (288 751) 2 156 737 (7 370) 2 149 367 (1 586 804) (1 586 804) 569 933 (7 370) 562 563 (43 356) (43 356) 526 577 (7 370) 519 207 (155 355) 2 359 (152 996) 371 222 (5 011) 366 211 370 399 (5 011) 365 388 823 823 71 70 Change in method of statements of cash flows presentation and refinement of definition of cash and cash equivalents During 2022, the group performed benchmarking and internal investigations to reassess the definition of cash and cash equivalents when compiling the statement of cash flows. The following have been identified as industry best practice during this exercise and have resulted in the following restatements, changes to accounting presentation policies and related additional disclosures: ■The direct method provides more reliable presentation of the cash flow movements for the group and company which is not available under the indirect method. This change only impacted net cash flows from operating activities within the statement of cash flows for the group and company. ■The group restated its financial statements to appropriately reflect and present the change from on demand loans and advances to banks to cash and cash equivalents in the statement of cash flow and updated the related accounting policy accordingly, refer to note 33.8. These balances, amounting to N$3.3 billion in the 2021 closing cash and cash equivalents balance and N$2.2 billion in the opening balance, were in prior periods excluded from cash and cash equivalents and instead included in income-earning assets. Both the balances and movement (N$1.0 billion) have now been appropriately included within the cash and cash equivalents line in the statement of cash flows. ■ Specific accounting policies, refer to section 3 in Annexure D, have been included for the following: -Cash and balances with central banks -Cash and cash equivalents. The above changes had the following impact on the statement of cash flows: GROUP Net cash flows from operating activities Cash flows from operations (indirect method) Net income before capital items and equity-accounted earnings Adjusted for non-cash items and other adjustments included in the income statement (Increase)/decrease in income-earning assets Increase/(decrease) in deposits and other liabilities Interest received Dividends received Interest paid Direct tax paid Net cash flows from operating activities Cash flows from operations (direct method) Interest and commission receipts Interest payments Recoveries on loans previously written off Cash payments to suppliers and employees Working capital changes (Increase)/decrease in operating assets Increase/(decrease) in operating liabilities Dividends received Taxation paid Net cash flows from investing activities Net cash flows from financing activities Net increase/(decrease) in cash and balances with the central bank Cash and balances with the central bank at the beginning of the year Effects of exchange rate differences on cash and balances with the central bank Cash and balances with the central bank at the end of the year COMPANY SBN HOLDINGS LIMITED Annual report 2022 2021 Previously reported N$'000 Restatement N$'000 Restated N$'000 446 661 (446 661) 569 933 (569 933) (751 308) (2 416 969) 2002 190 1 968 515 631 (759 732) (166 599) 751 308 2 416 969 (2 002 190) (1968 515) (631) 759 732 166 599 1 476 768 1 476 768 1 049 013 1 049 013 3 122 635 3 122 635 (759 732) 35 954 (1349 844) 593 723 (1 391 904) 1 985 627 631 (166 599) (759 732) 35 954 (1349 844) 593 723 (1 391 904) 1 985 627 631 (166 599) (157 194) (157 194) 163 902 163 902 453 369 1 030 107 1 483 476 1 035 972 2 234 158 (13 494) 1 488 497 (844) 3 250 771 3 270 130 (14 338) 4 739 268 2021 Previously N$'000 Restated N$'000 reported Restatement N$'000 Net cash flows from operating activities Cash flows from operations (indirect method) 274 928 (274 928) Net income before capital items and equity-accounted earnings 275 564 (275 564) Adjusted for non-cash items and other adjustments included in the income statement (Increase)/decrease in income earning assets Increase/(decrease) in deposits and other liabilities (236 917) 5 837 (2364) Dividends received 236 917 Direct tax paid (4109) 236 917 (5.837) 2 364 (236 917) 4 109 Net cash flows from operating activities Cash flows from operations (direct method) Interest and commission receipts Cash payments to suppliers and employees Working capital changes (Increase)/decrease in operating assets Increase/(decrease) in operating liabilities Dividends received Taxation paid Net cash flows from financing activities Net increase/(decrease) in cash and balances with the central bank Cash and balances with the central bank at the beginning of the year Cash and balances with the central bank at the end of the year 274 928 274 928 38 647 38 647 43 679 43 679 (5 032) (5 032) 3 473 3 473 5 837 5 837 (2364) (2 364) 236 917 236 917 (4109) (4109) (156 642) (156 642) 118 286 118 286 194 115 194 115 312 401 312 401 67
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