|
| 1. |
Changes
in accounting policy and presentation and discontinued activities |
| (a) |
Changes in
accounting policy and presentation |
| There
have been no changes to accounting policies in the 2004 financial year. A small
number of changes in the presentation of the notes to the financial statements
have been made and comparative figures have been restated accordingly as
explained in the notes where material. |
| |
|
| (b) |
Discontinued activities |
On
1 June 2001, BT disposed of its interests in Japan Telecom
and J-Phone Communications and, on 29 June 2001, its interest
in Airtel. On 22 June 2001, BT sold Yell, its classified advertising
directory businesses in the UK and the USA. These activities,
together with mmO2 which was demerged on 19 November
2001, are shown as discontinued operations in the profit and
loss accounts. The eliminations are intra-group eliminations.
The interest charge allocated to mmO2 up to the
date of the demerger has been calculated assuming that mmO2's
net debt at the date of the demerger of £500 million, had
been in existence for the whole of the period, and had been
bearing an interest charge of 8% per annum.
The interest charge allocated to Yell up to the
date of disposal represents amounts payable on intercompany loans charged at an
arm’s length rate of interest. The taxation charge allocated to discontinued
activities, up to the date of demerger or disposal, represents amounts charged
to these entities before recognising credit for group relief surrendered to
entities within continuing activities. |
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