Tesco 2006 Annual Report Download - page 93

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91Tesco plc
Note 32 Explanation of transition to IFRSs
This is the first year that the Group has presented its financial statements under IFRSs.
The accounting policies set out in note 1 have been applied in preparing the financial statements for the year ended 25 February
2006, the comparative information presented in these financial statements for the year ended 26 February 2005 and in the
preparation of an opening IFRS Balance Sheet as at 28 February 2004 (the Group’s date of transition to IFRSs).
An explanation of how the transition from UK GAAP to IFRSs has affected the Group’s financial position, financial performance
and cash flows is set out in the following tables and the accompanying notes.
Reconciliation of profit
For the year ended 26 February 2005
Presentation
Reported Share-based Business Employee of JVs and Deferred
under payments combinations Leasing benefits Associates tax Total IFRS Restated
UK GAAP IFRS 2 IFRS 3 IAS 17 IAS 19 IAS 28/31 IAS 12 adjustments under IFRSs
£m £m £m £m £m £m £m £m £m
Revenue 33,974 – – – – – – – 33,974
Cost of sales (31,271) – – (11) (40) – – (51) (31,322)
Gross profit 2,703 – – (11) (40) – – (51) 2,652
Administrative expenses (754) (52) 56 – (5) – – (1) (755)
Profit/(loss) on property-
related items 53 – – (4) – – – (4) 49
Operating profit 2,002 (52) 56 (15) (45) – – (56) 1,946
Shareof post-tax profits from
Joint ventures and Associates 130 – 5 4 – (64) – (55) 75
Finance income 99 – – – 4 – – 4 103
Finance costs (269) – – (1) – 34 – 33 (236)
Profit before tax 1,962 (52) 61 (12) (41) (30) – (74) 1,888
Taxation (593) 16 – 5 12 32 (13) 52 (541)
Profit for the year 1,369 (36) 61 (7) (29) 2 (13) (22) 1,347
Note: The above table represents the Income Statement prior to the reclassification of the Taiwanese business as a disposal group (note 7).