|
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.
|
Years
ended 31 March
|
|
|
2005
£m |
|
|
2004
£m |
|
|
2003
£m |
|
|
|
|
Net
income applicable to shareholders under UK GAAP
|
|
|
1,821 |
|
|
1,414 |
|
|
2,702 |
|
Restatement
under UITF 38 and UITF 17 – See
note 1
|
|
|
– |
|
|
3 |
|
|
(16 |
) |
|
|
|
Net
income applicable to shareholders under UK GAAP as previously
reported
|
|
|
1,821 |
|
|
1,417 |
|
|
2,686 |
|
|
Adjustment
for:
|
|
|
|
|
|
|
|
|
|
|
|
Sale
and leaseback of properties
|
|
|
(83 |
) |
|
(85 |
) |
|
(114 |
) |
|
Pension
costs
|
|
|
(212 |
) |
|
(428 |
) |
|
(177 |
) |
|
Redundancy
charges
|
|
|
(20 |
) |
|
20 |
|
|
– |
|
|
Capitalisation
of interest, net of related depreciation
|
|
|
(13 |
) |
|
(23 |
) |
|
(17 |
) |
|
Goodwill
|
|
|
16 |
|
|
12 |
|
|
(35 |
) |
|
Intangible
asset amortisation
|
|
|
– |
|
|
– |
|
|
(26 |
) |
|
Financial
instruments
|
|
|
(411 |
) |
|
(82 |
) |
|
731 |
|
|
Impairment
|
|
|
(24 |
) |
|
(24 |
) |
|
(24 |
) |
|
Employee
share plans
|
|
|
(15 |
) |
|
(8 |
) |
|
(11 |
) |
|
Property
rationalisation provision
|
|
|
(5 |
) |
|
(142 |
) |
|
147 |
|
|
Disposals
of businesses
|
|
|
– |
|
|
– |
|
|
130 |
|
|
Deferred
taxation
|
|
|
3 |
|
|
4 |
|
|
976 |
|
|
|
| |
|
|
1,057 |
|
|
661 |
|
|
4,266 |
|
|
Tax
effect of US GAAP adjustments
|
|
|
240 |
|
|
222 |
|
|
(132 |
) |
|
|
|
Net
income as adjusted for US GAAP
|
|
|
1,297 |
|
|
883 |
|
|
4,134 |
|
|
|
|
Basic
earnings per American Depositary Share as adjusted for US
GAAPa
|
|
|
£1.52 |
|
|
£1.02 |
|
|
£4.80 |
|
|
Diluted
earnings per American Depositary Share as adjusted for US
GAAPa
|
|
|
£1.51 |
|
|
£1.02 |
|
|
£4.77 |
|
|
|
| a |
Each
American Depositary Share is equivalent to ten ordinary
shares.
|
|
At
31 March
|
|
|
2005
£m |
|
|
2004
£m |
|
|
|
|
Shareholders’
equity under UK GAAP
|
|
|
3,851 |
|
|
3,066 |
|
Re-statement
under UITF 38 and UITF 17 – see
note 1
|
|
|
– |
|
|
28 |
|
|
|
|
Shareholders’
equity under UK GAAP as previously reported
|
|
|
3,851 |
|
|
3,094 |
|
|
Adjustment
for:
|
|
|
|
|
|
|
|
|
Sale
and leaseback of properties
|
|
|
(1,460 |
) |
|
(1,377 |
) |
|
Pension
costs
|
|
|
(5,219 |
) |
|
(5,714 |
) |
|
Redundancy
charges
|
|
|
– |
|
|
20 |
|
|
Capitalisation
of interest, net of related depreciation
|
|
|
178 |
|
|
195 |
|
|
Goodwill
|
|
|
51 |
|
|
124 |
|
|
Intangible
assets
|
|
|
78 |
|
|
– |
|
|
Financial
instruments
|
|
|
(371 |
) |
|
(8 |
) |
|
Impairment
|
|
|
77 |
|
|
100 |
|
|
Property
rationalisation provision
|
|
|
– |
|
|
5 |
|
|
Deferred
taxation
|
|
|
(56 |
) |
|
(59 |
) |
|
Dividend
declared after the financial year end
|
|
|
551 |
|
|
454 |
|
|
|
|
|
|
|
(2,320 |
) |
|
(3,166 |
) |
|
Tax
effect of US GAAP adjustments
|
|
|
1,736 |
|
|
1,711 |
|
|
|
|
Shareholders’
equity as adjusted for US GAAP
|
|
|
(584 |
) |
|
(1,455 |
) |
|
|
|
