BT 1997 Annual Report Download - page 68

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UNITED STATES GENERALLY ACCEPTED ACCOUNTING PRINCIPLES RECONCILIATIONS
68
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 YEAR ENDED 31 MARCH
1995 1996 1997 1997
£m £m £m $m(a)
Net income applicable to shareholders under UK GAAP 1,731 1,986 2,077 3,406
Adjustments for:
Pension costs (392) 18 83 136
Early release schemes 125 (152) 156 256
Capitalisation of interest, net of related depreciation (18) (22) (23) (38)
Goodwill 85(b) (74) (73) (119)
Mobile cellular telephone and broadcasting licences amortisation 130(b) –––
Software and other intangible asset capitalisation and amortisation, net 21 38 77 126
Deferred taxation 56 14 (148) (243)
Other items 6(2)––
Net income as adjusted for US GAAP 1,744 1,806 2,149 3,524
Earnings per American Depositary Share as adjusted for US GAAP (c) £2.80 £2.87 £3.39 $5.56
Shareholders’ equity AT 31 MARCH
1996 1997 1997
£m £m $m(a)
Shareholders’ equity under UK GAAP 12,678 11,116 18,230
Adjustments for:
Pension costs (1,140) (1,057) (1,733)
Early release schemes (168) (12) (20)
Capitalisation of interest, net of related depreciation 366 337 553
Goodwill, net of accumulated amortisation 2,174 2,146 3,519
Software and other intangible asset capitalisation and amortisation 196 260 426
Deferred taxation (1,802) (1,942) (3,185)
Dividend declared after the financial year end 715 764 1,253
Other items (9) (24) (39)
Shareholders’ equity as adjusted for US GAAP 13,010 11,588 19,004
(a) Translated at US$1.64 to £1.00, the Noon Buying Rate in New York in effect on 31 March 1997.
(b) The disposal of the group’s interest in AT&T Corporation shares which had been exchanged for shares in McCaw Cellular
Communications, Inc, during the year ended 31 March 1995 gave rise to adjustments, increasing net income, of £125m to
goodwill and £137m to mobile cellular telephone and broadcasting licence amortisation.
(c) Each American Depositary Share is equivalent to 10 ordinary shares of 25p each.