BT 2004 Annual Report Download - page 131

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vi Current asset investments continued
At 31 March 2004, the group held trading investments (as defined by US GAAP) with fair values totalling
£423 million (2003 – £935 million). Held-to-maturity securities at 31 March 2004 and 2003 consisted
of the following:
Amortised
cost
£m
Estimated
fair value
£m
Commercial paper, medium-term notes and other investments at 31 March 2004 3,629 3,629
Commercial paper, medium-term notes and other investments at 31 March 2003 2,565 2,565
The contractual maturities of the held-to-maturity debt securities at 31 March 2004 were as follows:
Amortised
cost
£m
Estimated
fair value
£m
Maturing on or before 31 March 2005 2,253 2,253
Maturing after 1 year through 5 years 1,376 1,376
Total at 31 March 2004 3,629 3,629
Available for sale investments at 31 March 2004 and 2003 consisted of the following:
Amortised
cost
£m
Estimated
fair value
£m
Commercial paper, medium-term notes and other investments at 31 March 2004 214 214
Commercial paper, medium-term notes and other investments at 31 March 2003 – –
The contractual maturities of the available for sale investments at 31 March 2004 were as follows:
Amortised
cost
£m
Estimated
fair value
£m
Maturing on or before 31 March 2005 214 214
Maturing after 1 year through 5 years ––
Total at 31 March 2004 214 214
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 effect 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 7.35% (2003 – 6.9%, 2002 – 6.5%). The components of the pension cost for
the main pension scheme comprised:
2004
£m
2003
£m
2002
£m
Service cost 388 453 564
Interest cost 1,657 1,707 1,739
Expected return on scheme assets (1,646) (1,813) (1,863)
Amortisation of prior service costs 24 24 24
Amortisation of net obligation at date of limited application of SFAS No. 87 252 52
Recognised gains 378 (22) (67)
Additional cost of termination benefits 160 140
Pension cost for the year under US GAAP 804 461 589
BT Annual Report and Form 20-F 2004130 United States Generally Accepted Accounting Principles