Year ended 31 July 2006
44. Reconciliation between IFRS and US GAAP
The following is a summary of the material adjustments to consolidated profit for the financial year and consolidated shareholders' funds that would have been required in applying the significant differences between IFRS and US GAAP.
| Reconciliation of consolidated profit for the financial year | Notes
(note 43) |
2006
£m |
2005
£m |
|---|---|---|---|
| Profit for the financial year under IFRS | 537 | 479 | |
| US GAAP adjustments: | |||
| Amortisation of intangible assets | (ii) | (8) | (3) |
| Pensions | (iv) | (13) | (15) |
| Leases | (vii) | (12) | (19) |
| Share based payments | (vi) | 1 | (5) |
| Other | (viii) | 1 | (7) |
| Deferred taxation | (v) | 13 | (2) |
| Taxation effect of US GAAP adjustments | 7 | 16 | |
| Profit for the year before effect of accounting change | 526 | 444 | |
| Cumulative effect of change in accounting principle | (vi) | (18) | - |
| Tax effect of change in accounting principle | 2 | - | |
| Profit for the financial year under US GAAP | 510 | 444 | |
| Presentation of earnings per share under US GAAP | |||
| Basic earnings per share before cumulative effect of accounting change (pence) | 88.91 | 75.61 | |
| Cumulative effect of accounting change, net of tax (pence) | (2.70) | - | |
| Basic earnings per share (pence) | 86.21 | 75.61 | |
| Diluted earnings per share before cumulative effect of accounting change (pence) | 88.10 | 74.94 | |
| Cumulative effect of accounting change, net of tax (pence) | (2.68) | - | |
| Diluted earnings per share (pence) | 85.42 | 74.94 | |
| Weighted average shares outstanding (millions) | 592 | 587 | |
| Dilutive effect of stock options (millions) | 5 | 5 | |
| Weighted average shares outstanding assuming dilution (millions) | 597 | 592 |
| Reconciliation of consolidated shareholders' funds | Notes | 2006
£m |
2005
£m |
|---|---|---|---|
| Shareholders' funds under IFRS | 2,592 | 2,301 | |
| US GAAP adjustments: | |||
| Goodwill | (i) | 170 | 174 |
| Intangible assets | (ii) | 82 | 94 |
| Contingent consideration | (iii) | 19 | 31 |
| Pensions | (iv) | 96 | 88 |
| Leases | (vii) | (15) | (2) |
| Share-based payments | (vi) | (23) | 12 |
| Other | (viii) | 8 | 7 |
| Deferred taxation | (v) | 13 | 7 |
| Taxation effect of US GAAP adjustments | (73) | (99) | |
| Total US GAAP adjustments | 277 | 312 | |
| Shareholders' funds under US GAAP | 2,869 | 2,613 |
