BT 2004 Annual Report Download - page 93

7. Profit on sale of fixed asset investments and group undertakings continued
Other gains of £135 million and losses of £80 million were also recognised during the year ended 31 March
2002. These gains and losses included a write-back of £14 million of goodwill taken directly to reserves before
April 1998. The consideration received in relation to these disposals was £860 million, including deferred and
non-cash amounts of £63 million.
8. Profit on sale of property fixed assets
In December 2001 the group entered into a sale and leaseback transaction with Telereal under which
substantially all of the group’s interest in most of its UK freehold and long leasehold properties and its
obligations in respect of rack rented properties were transferred to Telereal for cash consideration of
£2,380 million. Of the total profit from the sale of property in the year to 31 March 2002, £1,019 million relates
to this transaction.
9. Amounts written off investments
Amounts written off investments were £nil (2003 – £7 million, 2002 – £535 million). In the year ended 31 March
2002 these were mainly attributable to investments in AT&T Canada, £347 million and Impsat, £157 million.
10. Interest receivable 2004
£m
2003
£m
2002
£m
Income from listed investments 13 25
Other interest receivable
a
283 187 334
Group 296 189 339
Joint ventures 2114
Associates –57
Total interest receivable 298 195 360
a
Includes an exceptional credit of £34 million in the year ended 31 March 2004 being one off interest recognised on full repayment of loan notes received
as part of the original consideration from the disposal of Yell.
11. Interest payable 2004
£m
2003
£m
2002
£m
Interest payable and similar charges in respect of:
Bank loans and overdrafts 87 82 184
Interest payable on finance leases 19 –10
Other borrowings
abc
1,114 1,527 1,685
Group 1,220 1,609 1,879
Joint ventures 19 17 60
Associates –843
Total interest payable 1,239 1,634 1,982
a
Includes an exceptional charge of £89 million in the year ended 31 March 2004 being the premium on repurchasing £813 million of the group’s issued
bonds.
b
Includes an exceptional charge of £293 million in the year ended 31 March 2003 on the termination of interest rate swap agreements following the
receipt of the Cegetel sale proceeds.
c
Includes an exceptional charge of £162 million in the year ended 31 March 2002 on the novation of interest rate swap agreements as a consequence of
the property sale and leaseback transaction with Telereal.
12. Tax on profit (loss) on ordinary activities 2004
£m
2003
£m
2002
£m
United Kingdom:
Corporation tax at 30% 328 447 275
Taxation on the group’s share of results of associates ––2
Prior year adjustments –12 –
Non-UK taxation:
Current 37 47 23
Taxation on the group’s share of results of associates –81 50
Taxation on the group’s share of results of joint ventures ––34
Prior year adjustments –(26) (7)
Total current taxation 365 561 377
Deferred taxation charge (credit) at 30%
Origination and reversal of timing differences 184 (29) 34
Prior year adjustments (10) (73) 32
Total deferred taxation 174 (102) 66
Total tax on profit (loss) on ordinary activities 539 459 443
BT Annual Report and Form 20-F 200492 Notes to the financial statements