|
The following statements
summarise the material estimated adjustments, gross of
their tax effect, which reconcile net income and shareholders'
equity from that reported under UK GAAP to that which
would have been reported had US GAAP been applied.
| Net
income |
2003 |
|
2002 |
|
2001 |
|
| Years
ended 31 March |
£m |
|
£m |
|
£m |
|
|
| Net
income (loss) applicable to shareholders under UK
GAAP |
2,686 |
|
995 |
|
(1,870 |
) |
| Restatement
for deferred tax under FRS 19 |
– |
|
– |
|
60 |
|
|
| Net
income (loss) applicable to shareholders under UK
GAAP as previously reported |
2,686 |
|
995 |
|
(1,810 |
) |
| Adjustment
for: |
|
|
|
|
|
|
| Sale
and leaseback of properties |
(114 |
) |
(1,178 |
) |
– |
|
| Pension
costs |
(177 |
) |
(106 |
) |
(42 |
) |
| Redundancy
charges |
– |
|
(140 |
) |
(453 |
) |
| Capitalisation
of interest, net of related depreciation |
(17 |
) |
398 |
|
348 |
|
| Goodwill |
(35 |
) |
11 |
|
(55 |
) |
| Mobile
licences, software and other intangible asset capitalisation
and |
|
|
|
|
|
|
| amortisation,
net |
(26 |
) |
(32 |
) |
(32 |
) |
| Financial
instruments |
731 |
|
23 |
|
(133 |
) |
| Deferred
gain |
– |
|
313 |
|
(71 |
) |
| Impairment |
(24 |
) |
147 |
|
– |
|
| Employee
share plans |
(11 |
) |
(8 |
) |
(38 |
) |
| Property
rationalisation provision |
147 |
|
– |
|
– |
|
| Directories
in progress |
– |
|
– |
|
(82 |
) |
| Disposals
of businesses |
130 |
|
254 |
|
– |
|
| Deferred
taxation |
976 |
|
(1,320 |
) |
(64 |
) |
|
|
4,266 |
|
(643 |
) |
(2,432 |
) |
| Tax
effect of US GAAP adjustments |
(132 |
) |
(89 |
) |
75 |
|
|
| Net
income (loss) as adjusted for US GAAP |
4,134 |
|
(732 |
) |
(2,357 |
) |
|
| Basic
earnings (loss) per American Depositary Share as
adjusted for US GAAPa |
£4.80 |
|
£(0.88 |
) |
£(3.24 |
) |
| Diluted
earnings (loss) per American Depositary Share as
adjusted for US GAAPa |
£4.77 |
|
£(0.88 |
) |
£(3.24 |
) |
|
aEach
American Depositary Share is equivalent to ten ordinary
shares.
In
the 2003 financial year all the adjustments relate to
continuing operations (2002 – £2,009 million reduction,
2001 – £823 million reduction). Net income from continuing
operations was £4,134 million (2002 – £1,680 million
loss, 2001 – £809 million).
The
adjustments to net income relating to discontinued operations
are £nil (2002 – £282 million, 2001 – £276 million).
|
|
|
|
|
|
| Shareholders’
equity |
2003 |
|
2002 |
|
| At
31 March |
£m |
|
£m |
|
|
| Shareholders’
equity under UK GAAP |
2,642 |
|
(358 |
) |
| Adjustment
for: |
|
|
|
| Sale
and leaseback of properties |
(1,292 |
) |
(1,178 |
) |
| Pension
costs |
(6,371 |
) |
(3,003 |
) |
| Capitalisation
of interest, net of related depreciation |
225 |
|
250 |
|
| Goodwill |
113 |
|
186 |
|
Mobile
licences, software and other intangible asset capitalisation
and amortisation |
– |
|
482 |
|
| Financial
instruments |
86 |
|
(592 |
) |
| Impairment |
124 |
|
147 |
|
| Disposals
of businesses |
– |
|
120 |
|
| Property
rationalisation provision |
147 |
|
– |
|
| Deferred
taxation |
(63 |
) |
(1,375 |
) |
| Dividend
declared after the financial year end |
366 |
|
173 |
|
|
|
(4,023 |
) |
(5,148 |
) |
| Tax
effect of US GAAP adjustments |
1,765 |
|
901 |
|
|
Shareholders’
equity as adjusted for US GAAP |
(2,258 |
) |
(4,247 |
) |
|
|
