Unilever 2004 Annual Report Download - page 157

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Unilever’s consolidated accounts are prepared in accordance with accounting principles which differ in some respects from those applicable in
the United States. The following is a summary of the effect on the Group’s net profit, combined earnings per share and capital and reserves of
the application of United States generally accepted accounting principles (US GAAP).
€ million € million € million
2004 2003 2002
Net profit as reported in the consolidated profit and loss account 1 876 2 762 2 136
Attributable to: NV 1 283 1 976 1 679
PLC 593 786 457
US GAAP adjustments:
Currency retranslation written back on disposals –– (22)
Impairment of goodwill (359) ––
Goodwill 813 864 1 074
Identifiable intangible assets 221 304 284
Restructuring costs 275 (110) 34
Capitalised software 66 72 –
Interest (34) (45) (77)
Derivative financial instruments (66) (8) 201
Pensions and similar obligations (206) (219) (30)
Gain on partial disposal of a group company ––56
Taxation effect of above adjustments including differences in deferred tax accounting 100 187 32
Net increase/(decrease) 810 1 045 1 552
Net income under US GAAP before cumulative effect of change in accounting principles for
pensions and derivative financial instruments 2 686 3 807 3 688
Cumulative effect of change in accounting principle net of tax charge of €249 million in 2002 –– 522
Net income under US GAAP 2 686 3 807 4 210
Attributable to: NV 1 991 2 832 3 151
PLC 695 975 1 059
Combined net income per share under US GAAP before cumulative effect of change in
accounting principles
Euros per €0.51 of ordinary capital 2.76 3.90 3.74
Euro cents per 1.4p of ordinary capital 41.39 58.52 55.99
Combined diluted net income per share under US GAAP before cumulative effect of change in
accounting principles
Euros per €0.51 of ordinary capital 2.65 3.79 3.62
Euro cents per 1.4p of ordinary capital 39.70 56.81 54.33
Cumulative effect of change in accounting principles – combined net income per share
Euros per €0.51 of ordinary capital –– 0.53
Euro cents per 1.4p of ordinary capital –– 8.02
Cumulative effect of change in accounting principles – diluted combined net income per share
Euros per €0.51 of ordinary capital –– 0.52
Euro cents per 1.4p of ordinary capital –– 7.78
From 1 January 2003, for US GAAP purposes Unilever adopted SFAS 123 ‘Accounting for Stock-Based Compensation’. The economic fair value
of the awards is calculated using an option pricing model (usually an adjusted Black-Scholes or multinomial model) and the resulting cost is
recognised as remuneration cost amortised over the vesting period of the grant. Variable plans, being those with performance criteria other
than a service period, are also accounted for in accordance with SFAS 123. The actual remuneration cost charged in each period is shown on
page 139. Amounts for prior years were restated to reflect compensation costs for all the employee awards granted or modified in fiscal
years beginning after 1994.
154 Unilever Annual Report and Accounts 2004
Additional information for US investors
Unilever Group