BT 2000 Annual Report Download - page 108

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VI Current asset investments
Under US GAAP, investments in debt securities would be classi¢ed 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 classi¢ed 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 classi¢ed 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 2000, the group held trading investments (as de¢ned by US GAAP) at a carrying amount of »866 million
(1999 --- »1,678 million) with fair values totalling »873 million (1999 --- »1,678 million). Held-to-maturity securities at
31 March 1999 and 2000 consisted of the following:
Amortised
cost
£m
Estimated
fair value
£m
UK Government securities and other UK listed investments 15 15
Commercial paper, medium term notes and other investments 168 168
Total at 31 March 2000 183 183
UK Government securities and other UK listed investments 25 25
Commercial paper, medium term notes and other investments 18 18
Total at 31 March 1999 43 43
The contractual maturities of the held-to-maturity debt securities at 31 March 2000 were as follows:
Cost
£m
Fair value
£m
Maturing on or before 31 March 2001 25 25
Maturing after 31 March 2001 158 158
Total at 31 March 2000 183 183
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 e¡ect 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 6.5% (1999 --- 7.7%, 1998 --- 8.2%). The components of the pension cost for the main pension scheme
comprised:
2000
£m
1999
£m
1998
£m
Service cost 498 387 327
Interest cost 1,459 1,653 1,554
Expected return on scheme assets (1,600) (1,712) (1,595)
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 (65) (137) (129)
Additional cost of termination bene®ts 263 279 224
Pension cost for the year under US GAAP 631 546 457
Annual report and Form 20-F 107