BT 1999 Annual Report Download - page 99

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98
(h) Dividends
Under UK GAAP, dividends are recorded in the year in respect of which they are declared (in the case of interim or any special
dividends) or proposed by the board of directors to the shareholders (in the case of final dividends). Under US GAAP, dividends
are recorded in the period in which dividends are declared.
II 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 1999 1998 1997
YEAR ENDED 31 MARCH £m £m £m
)))))))))))%!!!!!00005
Net income applicable to shareholders under UK GAAP 2,983 1,702 2,077
Adjustments for:
Pension costs (104) (66) 83
Redundancy charges (284) (253) 156
Capitalisation of interest, net of related depreciation (a) (19) (38) (23)
Goodwill amortisation (a) 85 (71) (73)
Mobile licences, software and other intangible asset capitalisation and
amortisation, net (a) (226) 42 77
Investments (6) 5 –
Deferred taxation (a) 220 163 (148)
Other items (a) (60) (37) –
00000000001051!!!50000
Net income as adjusted for US GAAP 2,589 1,447 2,149
00000000001051!!!50000
Basic earnings per American Depositary Share as adjusted for US GAAP (b) £4.02 £2.27 £3.39
Diluted earnings per American Depositary Share as adjusted for US GAAP (b) £3.93 £2.23 £3.36
00000000001051!!!50000
Shareholders’ equity
AT 31 MARCH
1999 1998
£m £m
)))))))))))%!!!!!%)!5111100
Shareholders’ equity under UK GAAP 14,940 10,785
Adjustments for:
Pension costs (1,730) (1,347)
Redundancy costs (46) (41)
Capitalisation of interest, net of related depreciation 245 299
Goodwill, net of accumulated amortisation 293 2,118
Mobile licences, software and other intangible asset capitalisation and amortisation 628 930
Investments 51,266
Deferred taxation (1,424) (2,095)
Dividend declared after the financial year end 799 736
Other items (36) (36)
00000000000505111!!!1111005
Shareholders’ equity as adjusted for US GAAP 13,674 12,615
00000000000505111!!!1111005
(a) The disposal of the group’s interest in MCI shares during the year ended 31 March 1999 gave rise to adjustments; increasing
net income by £163m relating to goodwill and £95m relating to deferred taxation and decreasing net income by £197m relating
to software and other intangible assets, £60m relating to foreign exchange translation differences and £5m relating to the
capitalisation of interest.
(b) Each American Depositary Share is equivalent to 10 ordinary shares of 25p each.
UNITED STATES GENERALLY ACCEPTED ACCOUNTING PRINCIPLES