The total cash component of the acquisitions was $3.4m (note 24) and $2.9m of this is shown under investing cash flows as "payment of purchase of business...". The $3.5m of intangibles spends includes the difference but most of it is expenses capitalised during the ordinary course of business. Software companies that capitalise R&D are a pet hate of mine since it makes it very easy to manipulate profit and operating cash flows.
Ann: Appendix 4E and Final Report, page-8
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