|
ii Net income and shareholders’ equity reconciliation
statements
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 |
|
2004 |
|
2003 |
|
2002 |
|
| Years
ended 31 March |
|
£m |
|
£m |
|
£m |
|
|
|
|
|
|
|
|
|
| Net
income applicable to shareholders under UK GAAP |
|
1,417 |
|
2,686 |
|
995 |
|
| Adjustment
for: |
|
|
|
|
|
|
|
| |
Sale
and leaseback of properties |
|
(85 |
) |
(114 |
) |
(1,178 |
) |
| |
Pension
costs |
|
(428 |
) |
(177 |
) |
(106 |
) |
| |
Redundancy
charges |
|
20 |
|
– |
|
(140 |
) |
| |
Capitalisation
of interest, net of related depreciation |
|
(23 |
) |
(17 |
) |
398 |
|
| |
Goodwill |
|
12 |
|
(35 |
) |
11 |
|
| |
Mobile
licences, software and other intangible asset capitalisation
and amortisation,
net |
|
– |
|
(26 |
) |
(32 |
) |
| |
Financial
instruments |
|
(82 |
) |
731 |
|
23 |
|
| |
Deferred
gain |
|
– |
|
– |
|
313 |
|
| |
Impairment |
|
(24 |
) |
(24 |
) |
147 |
|
| |
Employee
share plans |
|
(8 |
) |
(11 |
) |
(8 |
) |
| |
Property
rationalisation provision |
|
(142 |
) |
147 |
|
– |
|
| |
Disposals
of businesses |
|
– |
|
130 |
|
254 |
|
| |
Deferred
taxation |
|
4 |
|
976 |
|
(1,320 |
) |
|
|
|
|
|
|
|
|
| |
|
|
661 |
|
4,266 |
|
(643 |
) |
| |
Tax
effect of US GAAP adjustments |
|
222 |
|
(132 |
) |
(89 |
) |
|
|
|
|
|
|
|
|
| Net
income (loss) as adjusted for US GAAP |
|
883 |
|
4,134 |
|
(732 |
) |
|
|
|
|
|
|
|
|
| Basic
earnings (loss) per American Depositary Share as
adjusted for US GAAPa |
|
£1.02 |
|
£4.80 |
|
£(0.88 |
) |
| Diluted
earnings (loss) per American Depositary Share as
adjusted for US GAAPa |
|
£1.02 |
|
£4.77 |
|
£(0.88 |
) |
|
|
|
|
|
|
|
|
| a
|
Each American Depositary Share is
equivalent to ten ordinary shares. |
In
the 2004 and 2003 financial years all the adjustments relate
to continuing operations (2002 – £2,009 million reduction
in relation to discontinued operations). Net income from
continuing operations was £883 million (2003 – £4,134
million, 2002 – £1,680 million loss).
The adjustments to net income
relating to discontinued operations are £nil (2003 – £nil,
2002 –£282 million).
| Shareholders’
equity |
2004 |
|
2003 |
|
| At
31 March |
£m |
|
£m |
|
|
|
|
|
|
| Shareholders’
equity under UK GAAP |
3,094 |
|
2,642 |
|
| Adjustment
for: |
|
|
|
|
| |
Sale and leaseback of properties |
(1,377 |
) |
(1,292 |
) |
| |
Pension costs |
(5,714 |
) |
(6,371 |
) |
| |
Redundancy charges |
20 |
|
– |
|
| |
Capitalisation of interest, net of
related depreciation |
195 |
|
225 |
|
| |
Goodwill |
124 |
|
113 |
|
| |
Financial instruments |
(8 |
) |
86 |
|
| |
Impairment |
100 |
|
124 |
|
| |
Property rationalisation provision |
5 |
|
147 |
|
| |
Deferred taxation |
(59 |
) |
(63 |
) |
| |
Dividend declared after the financial
year end |
454 |
|
366 |
|
|
|
|
|
|
| |
|
(3,166 |
) |
(4,023 |
) |
| |
Tax effect of US GAAP adjustments |
1,711 |
|
1,765 |
|
|
|
|
|
|
| Shareholders’
equity as adjusted for US GAAP |
(1,455 |
) |
(2,258 |
) |
|
|
|
|
|
|
