India Provisions in Nestle SA Financial Statements of 2014

[Prabhjeet Singh]

In Nestle SA Consolidated Financial Statements of 2014, in Note 12 Provisions made during the year are 920 but it is not visible in its income statement. May be it has been included in Restructuring costs, Litigation and onerous contracts in Note 4 but I am not sure regarding this. So please confirm this.

Also in cash flow statement, there is no entry regarding provisions (check Note 17 for this). There is a entry "Variation of provisions" in cash flow statement of amount CHF 324 million but I am not able to relate this to detailed note 12 of Provisions. Please explain what is "Variation of provisions" in cash flow statement and how to relate this to detailed note 12 of Provisions.

I will be really thankful.

 

[kirby]

To your first question, yes, the 920 in Provisions in Note 12 is substantially shown in Note 4. The amounts do not tie out due to reclassifications or rounding.
To your second question, the provision account amounts are reported in liability accounts on the balance sheet. Their net change from beginning of 2014 to end of 2014 can be caused by cash or non cash items. Variation of provisions reports the change caused by cash items only.