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Financial Statements
Unilever Annual Report and Accounts 2005 123
Notes to the consolidated accounts
Unilever Group
23 Equity
From 1 January 2005, Unilever has adopted IAS 32 ‘Financial Instruments: Disclosure and Presentation’ and IAS 39 ‘Financial Instruments:
Recognition and Measurement’. IAS 32 requires preference shares that provide for a fixed preference dividend to be classified as borrowings
and preference dividends to be recognised in the income statement as a finance cost. IAS 39 requires unrealised fair value gains/(losses) on
certain financial instruments to be recognised in equity, when realised, these fair value gains/(losses) are to be recognised in the income
statement. In accordance with the transition rules for first time adoption of IFRSs, 2004 comparatives have not been restated. The impact of
the adoption of IAS 32 and IAS 39 is shown in the following table:
Shareholders’ equity Total equity
€ million € million € million € million € million € million € million
Called up Share Total
share premium Other Retained shareholders’ Minority Total
Consolidated statement of changes in equity capital account reserves profit equity interest equity
1 January 2004 642 1 530 (2 442) 7 006 6 736 439 7 175
Total recognised income and expense for the year – – 218 2 156 2 374 167 2 541
Preference dividends – – – (28) (28) – (28)
Final dividends 2003 on ordinary capital – – – (1 116) (1 116) – (1 116)
Interim dividends 2004 on ordinary capital – – – (603) (603) – (603)
(Purchase)/sale/reduction of treasury stock – – (331) 7 (324) – (324)
Share-based payment credit(a) – – – 222 222 – 222
Dividends paid to minority shareholders –––––(203) (203)
Currency retranslation gains/(losses) net of tax – – – 1 1 (6) (5)
Other movements in equity – – – 2 2 (32) (30)
31 December 2004 642 1 530 (2 555) 7 647 7 264 365 7 629
Accounting policy change – preference shares (130) (1 372) – – (1 502) – (1 502)
Accounting policy change – other financial instruments – – (19) 407 388 – 388
Equity as restated at 1 January 2005 512 158 (2 574) 8 054 6 150 365 6 515
Total recognised income and expense for the year – – 379 3 825 4 204 249 4 453
Final dividends 2004 on ordinary capital – – – (1 229) (1 229) – (1 229)
Interim dividends 2005 on ordinary capital – – – (638) (638) – (638)
Conversion of preference shares – – 1 129 (199) 930 – 930
(Purchase)/sale/reduction of treasury stock – – (1 262) – (1 262) – (1 262)
Share-based payment credit(a) – – – 186 186 – 186
Dividends paid to minority shareholders –––––(217) (217)
Currency retranslation gains/(losses) net of tax –4––4913
Other movements in equity – – – 16 16 (2) 14
31 December 2005 512 162 (2 328) 10 015 8 361 404 8 765
(a) The share-based payment credit relates to the reversal of the non-cash charge recorded against operating profit in respect of the fair value
of share options and awards granted to employees.