 |
The following is a summary of the material adjustments
to profit and shareholders’ funds which would be required
if US Generally Accepted Accounting Principles (GAAP) had
been applied instead of UK GAAP. These adjustments have been
reflected in the income statements and balance sheet presented
in accordance with US GAAP.
|
|
|
|
|
|
| |
|
|
|
2001 |
|
| |
|
2002 |
|
(restated) |
|
| |
Profit
|
£m |
|
£m |
|
 |
| |
Profit attributable to shareholders
under UK GAAP |
3,915 |
|
3,053 |
|
| |
US GAAP adjustments: |
|
|
|
|
| |
Fixed assets |
45 |
|
15 |
|
| |
Intangible assets and goodwill |
(4,252 |
) |
(3,667 |
) |
| |
Inventory |
- |
|
(298 |
) |
| |
Disposal of investments,
subsidiaries and products |
7 |
|
87 |
|
| |
Employee costs |
(469 |
) |
(174 |
) |
| |
Provision against ESOT
shares |
51 |
|
(108 |
) |
| |
Derivative instruments |
8 |
|
15 |
|
| |
Restructuring |
37 |
|
182 |
|
| |
Taxation |
1,169 |
|
827 |
|
| |
Impairment of equity investments |
(8 |
) |
(75 |
) |
|
| |
Net income/(loss) under US GAAP before
cumulative changes in accounting principles |
503 |
|
(143 |
) |
| |
Cumulative effect of changes in accounting
principle |
(90 |
) |
- |
|
| |
Net income/(loss) under US GAAP after
cumulative effect of changes in accounting principles |
413 |
|
(143 |
) |
|
| |
Basic and diluted loss per share under
US GAAP: |
|
|
|
|
| |
Net income/(loss) before
cumulative changes in accounting principles |
8.5 |
p |
(2.4 |
)p |
| |
Changes in accounting principles |
(1.5) |
p |
- |
|
| |
Net income/(loss) after
changes in accounting principles |
7.0 |
p |
(2.4 |
)p |
|
|
|
|
|
|
|
| |
|
|
|
2001 |
|
| |
|
2002 |
|
(restated) |
|
| |
Equity
shareholders' funds |
£m |
|
£m |
|
|
| |
Equity shareholders' funds under UK
GAAP |
6,581 |
|
7,390 |
|
| |
US GAAPadjustments: |
|
|
|
|
| |
Fixed assets |
215 |
|
170 |
|
| |
Investments |
829 |
|
879 |
|
| |
Intangible assets and goodwill |
36,141 |
|
40,478 |
|
| |
Unrealised gains on marketable
securities |
113 |
|
163 |
|
| |
Employee costs |
(1,198 |
) |
299 |
|
| |
Employee Share Ownership
Trust |
(2,826 |
) |
(2,936 |
) |
| |
Restructuring costs |
(6 |
) |
(46 |
) |
| |
Derivative instruments |
98 |
|
29 |
|
| |
Dividends |
754 |
|
718 |
|
| |
Deferred taxation |
(5,729 |
) |
(7,037 |
) |
|
| |
Shareholders' equity under US GAAP |
34,922 |
|
40,107 |
|
|
Certain items for the year ended 31st December
2001 have been reclassified for comparative purposes.
A summary of the material differences between
UK and US GAAP that apply to the Group is set out in the Annual
Report 2002. Changes arising in 2002 are as follows:
During 2002 FRS 19 ‘Deferred tax’
has been implemented by the Group under UK GAAP. This FRS
requires deferred tax to be accounted for on a full provision
basis, rather than a partial provision basis as in 2001 and
earlier years. This change has been accounted for as a prior
period adjustment for UK GAAP purposes and comparative adjustments
to arrive at US GAAP have been restated as necessary. This
change has had no impact on US GAAP results.
The Group adopted SFAS 142, ‘Goodwill
and other Intangible Assets’ as of 1st January 2002.
The implementation of SFAS 142 resulted in no impairment of
the Group’s goodwill and a revised initial impairment
of £173 million, (£127 million net of tax) on
indefinite lived assets. This is shown as a cumulative effect
of an accounting change.
In addition, during 2002 the Group decided
to align the measurement date for all of its pension plans.
The impact, reflected as a cumulative effect of an accounting
change, was a £37 million credit, net of tax, to income.
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