BT 1999 Annual Report Download - page 101

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100
UNITED STATES GENERALLY ACCEPTED ACCOUNTING PRINCIPLES
VI Current asset investments
Under US GAAP, investments in debt securities would be classified as either trading, available-for-sale or held-to-maturity. Trading
investments would be stated at fair values and the unrealised gains and losses would be included in income. Securities classified
as available-for-sale would be stated at fair values, with unrealised gains and losses, net of deferred taxes, reported in
shareholders’ equity. Debt securities classified as held-to-maturity would be stated at amortised cost. The following analyses do
not include securities with original maturities of less than three months.
At 31 March 1999, the group held trading investments (as defined by US GAAP) at a carrying amount of £1,678m (1998 – £384m)
with fair values totalling £1,678m (1998 – £389m). Held-to-maturity securities at 31 March 1998 and 1999 consisted of the
following:
Amortised Estimated
cost fair value
£m £m
111155555
UK Government securities and other UK listed investments 25 25
Commercial paper, medium term notes and other investments 18 18
55555555555555555555555555111!!!01111110111
Total at 31 March 1999 43 43
0000000000555555111!! 01111110111
UK Government securities and other UK listed investments 25 25
Commercial paper, medium term notes and other investments 18 18
55555555555555555555555555111!!!01111110111
Total at 31 March 1998 43 43
0000000000555555111!! 01111110111
The contractual maturities of the held-to-maturity debt securities at 31 March 1999 were as follows: Cost Fair value
£m £m
111155555
Maturing on or before 31 March 2000 30 30
Maturing after 31 March 2000 13 13
55555555555555555555555555111!!!01111110111
Total at 31 March 1999 43 43
0000000000555555111!! 01111110111
VII Pension costs
The following position for the main pension scheme is computed in accordance with US GAAP pension accounting rules under
SFAS No. 87 and SFAS No. 88, the effect of which is shown in the above reconciliation statements.
The pension cost determined under SFAS No. 87 was calculated by reference to an expected long-term rate of return on scheme
assets of 7.7% (1998 – 8.2%, 1997 – 9.2%). The components of the pension cost for the main pension scheme comprised:
1999 1998 1997
£m £m £m
))))))))))!!!!)!!!111011111101111110111
Service cost 387 327 268
Interest cost 1,653 1,554 1,645
Expected return on scheme assets (1,712) (1,595) (1,668)
Amortisation of prior service costs 24 24 24
Amortisation of net obligation at date of limited application of SFAS No. 87 52 52 52
Recognised gains (137) (129) (123)
Additional cost of termination benefits 279 224 258
000000000011101!!!111011111101111110111
Pension cost for the year under US GAAP 546 457 456
000000000011101!!!111011111101111110111