BT 2007 Annual Report Download - page 138

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35. UNITED STATES GENERALLY ACCEPTED ACCOUNTING PRINCIPLES continued
(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
total equity from that reported under IFRS to that which would have been reported had US GAAP been applied.
Net income
Years ended 31 March Note
2007
£m
2006
£m
2005
£m
Profit for the year in accordance with IFRS 2,852 1,548 1,829
Profit (loss) attributable to minority interests 21 (1)
Profit attributable to equity shareholders in accordance with IFRS 2,850 1,547 1,830
Adjustment for:
Sale and leaseback of properties a (29) (18) 21
Pension costs b (195) (220) (333)
Capitalisation of interest c (5) (16) (13)
Financial instruments d 175 (436) (415)
Foreign exchange e –39 –
Deferred taxation f –33
Impairment of property, plant and equipment g (16) (38) (24)
Revenue h (82) ––
Share based payments i 2(1) 13
Property rationalisation provision k –– (5)
Termination benefits m –– (20)
2,700 860 1,057
Tax effect of US GAAP adjustments 92 203 240
Net income as adjusted for US GAAP 2,792 1,063 1,297
Basic earnings per American Depositary Share as adjusted for US GAAPa£3.37 £1.26 £1.52
Diluted earnings per American Depositary Share as adjusted for US GAAPa£3.29 £1.25 £1.51
aEach American Depositary Share is equivalent to ten ordinary shares.
Shareholders’ equity
At 31 March Note
2007
£m
2006
restateda
£m
Total equity under IFRS 4,272 1,607
Attributable to minority interest (34) (52)
Total parent shareholders’ equity under IFRS 4,238 1,555
Adjustment for:
Sale and leaseback of properties a (1,095) (1,067)
Pension costs b –(1,228)
Capitalisation of interest c 151 164
Financial instruments d (7) 3
Deferred taxation f (74) –
Impairment of property, plant and equipment g 22 40
Revenue h (82) –
Goodwill j 123 114
3,276 (419)
Tax effect of US GAAP adjustments 310 581
Shareholders’ equity as adjusted for US GAAP 3,586 162
aRestatement of deferred tax valuation allowance as set out in note f on page 135.
BT Group plc Annual Report & Form 20-F 137
Financial statements