BT 2007 Annual Report Download - page 140

Download and view the complete annual report

Please find page 140 of the 2007 BT annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 178

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150
  • 151
  • 152
  • 153
  • 154
  • 155
  • 156
  • 157
  • 158
  • 159
  • 160
  • 161
  • 162
  • 163
  • 164
  • 165
  • 166
  • 167
  • 168
  • 169
  • 170
  • 171
  • 172
  • 173
  • 174
  • 175
  • 176
  • 177
  • 178

35. UNITED STATES GENERALLY ACCEPTED ACCOUNTING PRINCIPLES continued
The effect on shareholders’ equity (retained earnings) as a result of adopting the change in measurement date is £92 million. This
effect is included in the projected benefit obligation in excess of scheme assets prior to the transition adjustments to reflect the fully
funded status of the plan.
The table below shows the amounts included in accumulated other comprehensive income at 31 March 2007 that have not yet
been recognised as components of the pension benefits expense in the income statement, as adjusted to accord with US GAAP.
£m
Net actuarial (gain) (1,852)
Prior service cost 1
The amounts included in accumulated other comprehensive income at 31 March 2007 which are expected to be recognised as
components of the pension benefits expense for the year ended 31 March 2008 in the income statement, as adjusted to accord with
US GAAP are shown below.
£m
Net actuarial (gain) (154)
Prior service cost 1
2007
£m
2006
£m
Changes in benefit obligation
Benefit obligation at the beginning of the year 38,730 34,336
Service cost 612 538
Interest cost 1,787 1,783
Employee contributions 18 21
Actuarial movement (1,732) 3,438
Adjustment for change in measurement date 637 –
Benefits paid or payable (1,472) (1,385)
Translation –(1)
Benefit obligation at the end of the year 38,580 38,730
The accumulated benefit obligation at 31 March 2007 was £37,703 million (2006: £37,850 million).
2007
£m
2006
£m
Changes in scheme assets
Fair value of scheme assets at the beginning of the year 34,293 29,169
Actual return on scheme assets 3,978 6,039
Employer contributions 919 450
Employee contributions 18 21
Adjustment for change in measurement date 551 –
Benefits paid or payable (1,472) (1,385)
Translation –(1)
Fair value of scheme assets at the end of the year 38,287 34,293
BT Group plc Annual Report & Form 20-F 139
Financial statements