Unilever 2002 Annual Report Download - page 122

Additional information for US investors 119
Unilever Group
Unilever Annual Report & Accounts and Form 20-F 2002
Financial Statements
€million €million
2002 2001
Capital and reserves as reported in the consolidated balance sheet (a) 5 867 6 993
Attributable to: NV 5 700 4 889
PLC 167 2 104
US GAAP adjustments:
Goodwill 2 645 2 436
Identifiable intangibles 2 782 3 009
Restructuring costs 198 166
Interest 355 432
Other comprehensive income effect of derivative financial instruments transition adjustment (61) (101)
Derivative financial instruments 73 (128)
Pensions and similar liabilities (975) 538
Dividends 1 119 1 059
Taxation effect of above adjustments (a) (304) (851)
Net increase 5 832 6 560
Capital and reserves under US GAAP 11 699 13 553
Attributable to: NV 9 902 9 340
PLC 1 797 4 213
(a) Restated for FRS 19, see note 18 on page 94.
The aggregate amounts included in the consolidated Unilever Group capital and reserves (under Unilever accounting principles) in respect
of cumulative currency translation adjustments are as follows:
€ million €million €million
2002 2001 2000
Balance 1 January (4 745) (3 669) (3 411)
Arising during the year (1 517) (1 076) (258)
Balance 31 December (6 262) (4 745) (3 669)
The aggregate amounts of foreign currency transaction gains and (losses) charged in
the consolidated profit and loss account are: (84) (30) 8
The consolidated accounts of the Unilever Group have been prepared in accordance with accounting principles which differ in certain
respects from those generally accepted in the United States (US GAAP).
The principal differences are set out below.
Profit or loss on disposal of businesses
Unilever calculates profit or loss on sale of businesses after writing back any goodwill previously written off directly to reserves as a
movement in profit retained. Under US GAAP the profit or loss on disposal of the businesses is stated net of the relevant unamortised
goodwill included on the balance sheet and the cumulative currency retranslation differences recognised through the statement of total
recognised gains and losses.
Under UK GAAP, gains on the partial disposal of group companies involving non-monetary consideration are recorded in the statement of
total recognised gains and losses. Under US GAAP, these gains are recorded in the profit and loss account.
Goodwill and other intangibles
Under UK and Netherlands GAAP, goodwill (being the difference between the fair value of consideration paid for new interests in group
companies, joint ventures and associated companies and the fair value of the Group’s share of their net assets at the date of acquisition)
and identifiable intangible assets purchased after 1 January 1998 are capitalised and amortised in operating profit over the period of their
expected useful life, up to a maximum of 20 years. Periods in excess of five years are used only where the directors are satisfied that the
life of these assets will clearly exceed that period. Goodwill and intangible assets purchased prior to 1 January 1998 were written off in the
year of acquisition as a movement in profits retained.
On disposal of a business acquired prior to 1 January 1998, purchased goodwill written off on acquisition is reinstated in arriving at the
profit or loss on disposal.
Under US GAAP prior to 1 January 2002, purchased goodwill and identifiable intangibles were capitalised and amortised over their useful
lives. From 1 January 2002, under SFAS 142, the amortisation of goodwill and identifiable intangibles that have indefinite useful lives
ceased. Intangible assets that have finite useful lives continue to be amortised over their useful lives.