BT 2001 Annual Report Download - page 98

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16. Acquisitions and disposals (continued)
The acquisition of the group’s 50% interest in Concert comprised:
£m
Group’s share of Concert’s opening net assets (US GAAP) 631
Group’s share of US to UK GAAP adjustments (180)
Group’s share of Concert’s opening net assets (UK GAAP) 451
Net assets contributed by the group to the joint venture (196)
Transition costs (96)
Unrealised gain on the contribution 159
The gain on the transfer of the assets is unrealised since the group continues to maintain a 50% interest in the assets contributed.
This gain has been taken to a non-distributable reserve and is shown in the statement of total recognised gains and losses for the
year ended 31 March 2000. There is no tax charge on the gain.
During the year ended 31 March 2001, the group’s share of Concert’s opening net assets was amended, due to certain true up
contributions, reducing the unrealised gain by »49 million. This is shown in the statement of total recognised gains and losses for
the year ended 31 March 2001.
Acquisition of associates and joint ventures
Year ended 31 March 2001 Telenordia (j)
£m
J-Phone (k)
£m
Group share of original book value of net assets (net liabilities) 10 5
Fair value adjustment to achieve consistency of accounting policies – –
Fair value to the group 10 5
Goodwill 84 –
Total cost 94 5
Year ended 31 March 2000
Japan
Telecom (l)
£m
AT&T
Canada (m)
£m
Rogers Cantel
Mobile
Communi-
cations (m)
£m
Smartone
Mobile
Communi-
cations (m)
£m
Other (m)
£m
Group share of original book value of net assets 871 101 11 96 34
Fair value adjustment to achieve consistency of accounting policies (49) – – – –
Fair value to the group 822 101 11 96 34
Goodwill 432 259 288 145 51
Total cost 1,254 360 299 241 85
Year ended 31 March 1999
Maxis
Communi-
cations (n)
£m
LG
Telecom (n)
£m
Airtel
Movil (o)
£m
Group share of original book value of net assets 60 98 62
Fair value adjustment to achieve consistency of accounting policies (9) (58) (19)
Fair value to the group 51 40 43
Goodwill 228 194 158
Total cost 279 234 201
(j) Telenordia
On 8 September 2000, BT increased its existing 33% interest in Telenordia, based in Sweden, to 50% for »94 million. Goodwill is
being amortised over 20 years.
Notes to the financial statements
98 BT Annual report and Form 20-F