IFRS Statements - Part 2

GlaxoSmithKline PLC 10 February 2005 GlaxoSmithKline plc IFRS Announcement Part 2 of 2 Balance sheet ------------- Explanation of IFRS balance sheet adjustments At 31st December 2003 At 31st March 2004 At 31st June 2004 At 31st September 2004 At 31st December 2004 Explanation of IFRS balance sheet adjustments (a) Dividend deferred The practice under UK GAAP is to account for dividends proposed relating to any given accounting period in that period. IFRS only recognises the liability for a dividend when it is declared, which is usually after the accounting period to which it relates. Accordingly, there is an adjustment to the balance sheet at 31st December 2003 as the liability for the fourth quarter dividend of £808 million is not recognised until the first quarter of 2004. Subsequent balance sheets contain a similar adjustment. (b) Share-based payments The present UK GAAP approach to share-based payments is to record any intrinsic loss on grant suffered by the company. This means that for share options granted at the market price there is no charge to the income statement. Where shares or options are granted at no cost to the employee (e.g. under long-term incentive plans) the income statement is charged with an amount equal to the market price on the date of the award, subject to meeting any performance targets, spread over the performance period (usually three years). IFRS 2, Share-based Payment, requires the fair value of the equity instruments issued to be charged to the income statement. The shares held in the ESOP Trusts are matched to share options and awards granted. Under both UK GAAP and IFRS shares held in the ESOP Trusts are recorded in equity and transfers are made between the carrying value of the shares and retained earnings to reflect the value of the expected proceeds receivable on the exercise of options by employees. However, there is a timing adjustment relating to this transfer arising from the different income statement treatments of the cost of the share options and awards. GlaxoSmithKline receives a tax credit, as appropriate, which relates to share options and awards when exercised, based on the gains the option or award holders make and dependent on the tax rules in the country in which the deduction is claimed. The deferred tax asset represents an estimate of future tax relief for this gain and is based on the potential gains available to the option or award holders at the balance sheet date. (c) Coreg capitalisation and amortisation The North American rights to Coreg were acquired at the time of the GW/SB merger as partial consideration for the required disposal of Kytril to Roche. Under UK GAAP this was accounted for as an exchange of assets with no value being attributed to Coreg on the balance sheet. IFRS, however, requires the acquired rights to Coreg to be added to intangible assets at their fair value on the date of acquisition of $400 million, and then amortised over their remaining useful life of eight years. (d) Other intangible assets amortisation Under UK GAAP, GlaxoSmithKline amortises intangible assets over their estimated expected useful lives from acquisition, which can be up to a maximum of 15 years. IFRS only permits amortisation to commence when the asset becomes available for use, with annual impairment testing required before this point. GlaxoSmithKline has determined that the point at which amortisation of product-related assets commences under IFRS will normally be regulatory approval. The majority of GlaxoSmithKline's intangible assets relates to the acquisition of rights to compounds in development and so has not reached the point at which amortisation commences. This has led to an increase in the carrying value of intangible assets at the balance sheet dates. (e) Goodwill amortisation reversal UK GAAP requires goodwill to be amortised over its estimated expected useful life, which GlaxoSmithKline has determined to be normally no longer than 20 years. Under IFRS, however, goodwill is considered to have an indefinite life and so is not amortised, but is subject to annual impairment testing. This adjustment therefore reverses the goodwill amortisation charged under UK GAAP since the transition date of 1st January 2003, including that recorded in the investments in associates line relating to the acquisition of the Group's interest in Quest Diagnostics, Inc. Under the business combinations exemption of IFRS 1, goodwill previously written off direct to reserves under UK GAAP is not recycled to the income statement on the disposal or part-disposal of the subsidiary or associate, as it would be under UK GAAP. (f) Pensions and other post employment benefits GlaxoSmithKline accounts under UK GAAP for pensions and other post-employment benefits (OPEBs) in accordance with SSAP 24, which spreads the costs of providing the benefits over the estimated average service lives of the employees. The additional FRS 17 disclosures give the pension fund surpluses and deficits and the liabilities for OPEBs based on the valuation methodologies required by that Standard. IAS 19 takes a similar valuation approach to FRS 17, and in accordance with the transitional provisions of IFRS 1 the surpluses and deficits have been recognised on the balance sheet at the transition date of 1st January 2003. In addition, following an amendment to IAS 19 issued by the IASB in December 2004, it is permitted to recognise any movements in the surpluses or deficits immediately in subsequent balance sheets, but outside the income statement, in a similar way to FRS 17. This means that, in most cases, the balance sheet reflects the full surplus or deficit positions of the funds. The effect of this change is to increase the pension and other post-employment benefit provisions at 31st December 2003, 31st March 2004 and 30th June 2004 by £435 million, £438 million and £704 million, respectively, from those presented on 29th October 2004. Consequential adjustments to the deferred tax assets and minority interests have also been made. (g) Other adjustments There are a number of other less significant adjustments and reclassifications, which include: • Computer software: All computer software is included within tangible fixed assets on the UK GAAP balance sheet, but under IFRS only computer software which is integral to another fixed asset, such as an operating system for a complex piece of machinery, is included in tangible fixed assets. All other computer software is required to be recorded as an intangible asset. • Deferred tax on intercompany profit in inventory: Under UK GAAP deferred tax on the provision for intercompany profit held in inventory is calculated at the supplying company's effective tax rate. IFRS, however, takes a balance sheet approach to the recognition of deferred tax which results in the tax rate of the company holding the inventory at the balance sheet date being applied to the provision. If the proportions of the Group's inventory held in specific locations c hange significantly from one balance sheet date to the next there could be a significant change in the value of the deferred tax asset, which is reflected through the tax charge for the year. • Deferred tax on acquired brands: On acquisition of a company, where there is a difference between the fair value of the brands and their tax cost in that company, a taxable temporary difference is created under IFRS which has resulted in a reduction in deferred tax. • Cash equivalents reclassification: On the IFRS balance sheet liquid investments with maturities of less than three months at acquisition are reclassified into cash and cash equivalents. • Provisions reclassification: With the exception of pensions and OPEB provisions, IFRS requires the elements of provisions which are expected to be paid within one year of the balance sheet date to be presented on the balance sheet within current liabilities as short term provisions. BALANCE SHEET At 31st December 2003 IFRS Adjustments UK GAAP (Note) IFRS £m £m £m ASSETS ----------- ----------- ----------- Non-current assets Property, plant and equipment 6,441 (285) 6,156 Goodwill 143 12 155 Other intangible assets 1,697 533 2,230 Investments in associates and joint ventures 196 14 210 Other investments 262 - 262 Deferred tax assets 1,441 498 1,939 Other non-current assets 522 9 531 ----------- ----------- ----------- Total non-current assets 10,702 781 11,483 ----------- ----------- ----------- Current assets Inventories 2,109 - 2,109 Trade and other receivables 4,934 (439) 4,495 Liquid investments 2,493 (1,024) 1,469 Cash and cash equivalents 962 1,024 1,986 ----------- ----------- ----------- Total current assets 10,498 (439) 10,059 ----------- ----------- ----------- TOTAL ASSETS 21,200 342 21,542 ----------- ----------- ----------- LIABILITIES Current liabilities Short-term borrowings (1,452) - (1,452) Trade and other payables (5,561) 844 (4,717) Current tax payable (1,458) - (1,458) Short-term provisions - (968) (968) ----------- ----------- ----------- Total current liabilities (8,471) (124) (8,595) ----------- ----------- ----------- Non-current liabilities Long-term borrowings (3,651) - (3,651) Deferred tax provision (618) 449 (169) Pensions and other post-employment benefits (807) (2,137) (2,944) Other provisions (1,617) 962 (655) Other non-current liabilities (232) - (232) ----------- ----------- ----------- Total non-current liabilities (6,925) (726) (7,651) ----------- ----------- ----------- TOTAL LIABILITIES (15,396) (850) (16,246) ----------- ----------- ----------- NET ASSETS 5,804 (508) 5,296 ----------- ----------- ----------- EQUITY Share capital 1,487 - 1,487 Share premium account 264 - 264 Shares held by ESOP Trusts (2,729) 11 (2,718) Other reserves 1,925 - 1,925 Retained earnings 4,112 (514) 3,598 ----------- ----------- ----------- 5,059 (503) 4,556 Non equity minority interests 503 - 503 Equity minority interests 242 (5) 237 ----------- ----------- ----------- 5,804 (508) 5,296 Note: The analysis of these adjustments is shown on the next page. Analysis of IFRS balance sheet adjustments At 31st December 2003 Coreg Other Share- capitalisation intangible Goodwill Pensions Dividend based and assets amortisation and IFRS deferred payments amortisation amortisation reversal OPEBs Other adjust- (a) (b) (c) (d) (e) (f) (g) ments £m £m £m £m £m £m £m £m --- --- --- --- --- --- -- --- ASSETS Non-current assets Property, Plant & - - - - - - (285) (285) Equipment Goodwill - - - - 12 - - 12 Other intangible assets - - 140 108 - - 285 533 Investments in associates - - - 1 13 - - 14 and joint ventures Other investments - - - - - - - - Deferred tax assets - 72 (45) (18) - 334 155 498 Other non-current assets - - - - - 9 - 9 --- --- --- --- --- --- -- --- Total non-current assets - 72 95 91 25 343 155 781 --- --- --- --- --- --- -- --- Current assets Inventories - - - - - - - - Trade and other - - - - - (439) - (439) receivables Liquid investments - - - - - - (1,024) (1,024) Cash and cash equivalents - - - - - - 1,024 1,024 --- --- --- --- --- --- -- --- Total current assets - - - - - (439) - (439) --- --- --- --- --- --- -- --- TOTAL ASSETS - 72 95 91 25 (96) 155 342 --- --- --- --- --- --- -- --- LIABILITIES Current liabilities Short-term borrowings - - - - - - - - Trade and other payables 808 - - - - 36 - 844 Current tax payable - - - - - - - - Short-term provisions - - - - - - (968) (968) --- --- --- --- --- --- -- --- Total current liabilities 808 - - - - 36 (968) (124) Non-current liabilities Long-term borrowings - - - - - - - - Deferred tax provision - - - (19) - 453 15 449 Pensions and other post- - - - - - (2,137) - (2,137) employment benefits Other provisions - - - - - (6) 968 962 Other non-current - - - - - - - - liabilities --- --- --- --- --- --- -- --- Total non-current - - - (19) - (1,690) 983 (726) liabilities --- --- --- --- --- --- -- --- TOTAL LIABILITIES 808 - - (19) - (1,654) 15 (850) --- --- --- --- --- --- -- --- TOTAL NET ASSETS 808 72 95 72 25 (1,750) 170 (508) --- --- --- --- --- --- -- --- EQUITY Share capital - - - - - - - - Share premium account - - - - - - - - Shares held by ESOP - 11 - - - - - 11 Trusts Other reserves - - - - - - - - Retained earnings 808 61 95 72 25 (1,745) 170 (514) --- --- --- --- --- --- -- --- 808 72 95 72 25 (1,745) 170 (503) Non-equity minority - - - - - - - - interests Equity minority interests - - - - - (5) - (5) --- --- --- --- --- --- -- --- TOTAL EQUITY 808 72 95 72 25 (1,750) 170 (508) --- --- --- --- --- --- -- --- BALANCE SHEET At 31st March 2004 IFRS Adjustments UK GAAP (Note) IFRS £m £m £m ASSETS ---- ---- ---- Non-current assets Property, plant and equipment 6,261 (275) 5,986 Goodwill 133 14 147 Other intangible assets 1,642 519 2,161 Investments in associates and joint ventures 200 16 216 Other investments 260 - 260 Deferred tax assets 1,480 527 2,007 Other non-current assets 281 9 290 ---- ---- ---- Total non-current assets 10,257 810 11,067 ---- ---- ---- Current assets Inventories 2,110 - 2,110 Trade and other receivables 5,076 (430) 4,646 Liquid investments 2,319 (859) 1,460 Cash and cash equivalents 667 859 1,526 ---- ---- ---- Total current assets 10,172 (430) 9,742 ---- ---- ---- TOTAL ASSETS 20,429 380 20,809 ---- ---- ---- LIABILITIES Current liabilities Short-term borrowings (1,394) - (1,394) Trade and other payables (5,395) 607 (4,788) Current tax payable (1,759) - (1,759) Short-term provisions - (759) (759) ---- ---- ---- Total current liabilities (8,548) (152) (8,700) ---- ---- ---- Non-current liabilities Long-term borrowings (3,595) - (3,595) Deferred tax provision (545) 444 (101) Pensions and other post-employment benefits (797) (2,140) (2,937) Other provisions (1,396) 755 (641) Other non-current liabilities (244) - (244) ---- ---- ---- Total non-current liabilities (6,577) (941) (7,518) ---- ---- ---- TOTAL LIABILITIES (15,125) (1,093) (16,218) ---- ---- --- NET ASSETS 5,304 (713) 4,591 ---- ---- ---- EQUITY Share capital 1,484 - 1,484 Share premium account 273 - 273 Shares held by ESOP Trusts (2,677) 9 (2,668) Other reserves 1,929 - 1,929 Retained earnings 4,033 (716) 3,317 ---- ---- ---- 5,042 (707) 4,335 Non equity minority interests 49 - 49 Equity minority interests 213 (6) 207 ---- ---- ---- 5,304 (713) 4,591 ---- ---- ---- Note: The analysis of these adjustments is shown on the next page. Analysis of IFRS balance sheet adjustments At 31st March 2004 Coreg Other Share- capitalisation intangible Goodwill Pensions Dividend based and assets amortisation and IFRS deferred payments amortisation amortisation reversal OPEBs Other adjust- (a) (b) (c) (d) (e) (f) (g) ments £m £m £m £m £m £m £m £m --- --- --- --- --- --- -- --- ASSETS Non-current assets Property, plant & - - - - - - (275) (275) equipment Goodwill - - - - 14 - - 14 Other Intangible assets - - 129 115 - - 275 519 Investments in associates - - - 1 14 - 1 16 and joint ventures Other investments - - - - - - - - Deferred tax assets - 79 (43) (21) - 345 167 527 Other non-current assets - - - - - 9 - 9 --- --- --- --- --- --- -- --- Total non-current assets - 79 86 95 28 354 168 810 --- --- --- --- --- --- -- --- Current assets Inventories - - - - - - - - Trade and other - - - - - (430) - (430) receivables Liquid investments - - - - - - (859) (859) Cash and cash equivalents - - - - - - 859 859 --- --- --- --- --- --- -- --- Total current assets - - - - - (430) - (430) --- --- --- --- --- --- -- --- TOTAL ASSETS - 79 86 95 28 (76) 168 380 --- --- --- --- --- --- -- --- LIABILITIES Current liabilities Short-term borrowings - - - - - - - - Trade and other payables 575 - - - - 32 - 607 Current tax payable - - - - - - - - Short-term provisions - - - - - - (759) (759) --- --- --- --- --- --- -- --- Total current liabilities 575 - - - - 32 (759) (152) --- --- --- --- --- --- -- --- Non-current liabilities Long-term borrowings - - - - - - - - Deferred tax provision - - - (19) - 453 10 444 Pensions and other post- - - - - - (2,140) - (2,140) employment benefits Other provisions - - - - - (4) 759 755 Other non-current - - - - - - - - liabilities --- --- --- --- --- --- -- --- Total non-current - - - (19) - (1,691) 769 (941) liabilities --- --- --- --- --- --- -- --- TOTAL LIABILITIES 575 - - (19) - (1,659) 10 (1,093) --- --- --- --- --- --- -- --- TOTAL NET ASSETS 575 79 86 76 28 (1,735) 178 (713) --- --- --- --- --- --- -- --- EQUITY Share capital - - - - - - - - Share premium account - - - - - - - - Shares held by ESOP - 9 - - - - - 9 Trusts Other reserves - - - - - - - - Retained earnings 575 70 86 76 28 (1,729) 178 (716) --- --- --- --- --- --- -- --- 575 79 86 76 28 (1,729) 178 (707) Non-equity minority - - - - - - - - interests Equity minority interests - - - - - (6) - (6) --- --- --- --- --- --- -- --- TOTAL EQUITY 575 79 86 76 28 (1,735) 178 (713) --- --- --- --- --- --- -- --- BALANCE SHEET At 30th June 2004 IFRS Adjustments UK GAAP (Note) IFRS £m £m £m ASSETS ---- ---- ---- Non-current assets Property, plant and equipment 6,350 (258) 6,092 Goodwill 135 17 152 Other intangible assets 1,662 510 2,172 Investments in associates and joint ventures 208 19 227 Other investments 309 - 309 Deferred tax assets 1,520 633 2,153 Other non-current assets 272 14 286 ---- ---- ---- Total non-current assets 10,456 935 11,391 ---- ---- ---- Current assets Inventories 2,133 - 2,133 Trade and other receivables 5,107 (431) 4,676 Liquid investments 2,946 (1,494) 1,452 Cash and cash equivalents 1,035 1,494 2,529 ---- ---- ---- Total current assets 11,221 (431) 10,790 ---- ---- ---- TOTAL ASSETS 21,677 504 22,181 ---- ---- ---- LIABILITIES Current liabilities Short-term borrowings (1,096) - (1,096) Trade and other payables (5,093) 601 (4,492) Current tax payable (1,807) - (1,807) Short-term provisions - (996) (996) ---- ---- ---- Total current liabilities (7,996) (395) (8,391) ---- ---- ---- Non-current liabilities Long-term borrowings (4,908) - (4,908) Deferred tax provision (550) 448 (102) Pensions and other post-employment benefits (808) (2,430) (3,238) Other provisions (1,450) 993 (457) Other non-current liabilities (265) - (265) ---- ---- ---- Total non-current liabilities (7,981) (989) (8,970) ---- ---- ---- TOTAL LIABILITIES (15,977) (1,384) (17,361) ---- ---- ---- NET ASSETS 5,700 (880) 4,820 ---- ---- ---- EQUITY Share capital 1,483 - 1,483 Share premium account 279 - 279 Shares held by ESOP Trusts (2,657) 6 (2,651) Other reserves 1,930 - 1,930 Retained earnings 4,441 (879) 3,562 ---- ---- ---- 5,476 (873) 4,603 Equity minority interests 224 (7) 217 ---- ---- ---- 5,700 (880) 4,820 ---- ---- ---- Note: The analysis of these adjustments is shown on the next page. Analysis of IFRS balance sheet adjustments At 30th June 2004 Coreg Other Share- capitalisation intangible Goodwill Pensions Dividend based and assets amortisation and IFRS deferred payments amortisation amortisation reversal OPEBs Other adjust- (a) (b) (c) (d) (e) (f) (g) ments £m £m £m £m £m £m £m £m --- --- --- --- --- --- -- --- ASSETS Non-current assets Property, plant & - - - - - - (258) (258) equipment Goodwill - - - - 17 - - 17 Other intangible assets - - 124 128 - - 258 510 Investments in associates - - - 1 18 - - 19 and joint ventures Other investments - - - - - - - - Deferred tax assets - 84 (41) (25) - 449 166 633 Other non-current assets - - - - - 14 - 14 --- --- --- --- --- --- -- --- Total non-current assets - 84 83 104 35 463 166 935 --- --- --- --- --- --- -- --- Current assets Inventories - - - - - - - - Trade and other - - - - - (431) - (431) receivables Liquid investments - - - - - - (1,494) (1,494) Cash and cash equivalents - - - - - - 1,494 1,494 --- --- --- --- --- --- -- --- Total current assets - - - - - (431) - (431) --- --- --- --- --- --- -- --- TOTAL ASSETS - 84 83 104 35 32 166 504 --- --- --- --- --- --- -- --- Current liabilities Short-term borrowings - - - - - - - - Trade and other payables 573 - - - - 28 - 601 Current tax payable - - - - - - - - Short-term provisions - - - - - - (996) (996) --- --- --- --- --- --- -- --- Total current liabilities 573 - - - - 28 (996) (395) --- --- --- --- --- --- -- --- Non-current liabilities Long-term borrowings - - - - - - - - Deferred tax provision - - - (19) - 453 14 448 Pensions and other post- - - - - - (2,430) - (2,430) employment benefits Other provisions - - - - - (3) 996 993 Other non-current - - - - - - - - liabilities --- --- --- --- --- --- -- --- Total non-current - - - (19) - (1,980) 1,010 (989) liabilities --- --- --- --- --- --- -- --- TOTAL LIABILITIES 573 - - (19) - (1,952) 14 (1,384) --- --- --- --- --- --- -- --- TOTAL NET ASSETS 573 84 83 85 35 (1,920) 180 (880) --- --- --- --- --- --- -- --- EQUITY Share capital - - - - - - - - Share premium account - - - - - - - - Shares held by ESOP Trusts - 6 - - - - - 6 Other reserves - - - - - - - - Retained earnings 573 78 83 85 35 (1,913) 180 (879) --- --- --- --- --- --- -- --- 573 84 83 85 35 (1,913) 180 (873) Equity minority interests - - - - - (7) - (7) --- --- --- --- --- --- -- --- TOTAL EQUITY 573 84 83 85 35 (1,920) 180 (880) --- --- --- --- --- --- -- --- BALANCE SHEET At 30th September 2004 IFRS Adjustments UK GAAP (Note) IFRS £m £m £m ASSETS ---- ---- ---- Non-current assets Property, plant and equipment 6,450 (256) 6,194 Goodwill 136 21 157 Other intangible assets 1,993 498 2,491 Investments in associates and joint ventures 214 23 237 Other investments 302 - 302 Deferred tax assets 1,519 586 2,105 Other non-current assets 259 14 273 ---- ---- ---- Total non-current assets 10,873 886 11,759 ---- ---- ---- Current assets Inventories 2,250 14 2,264 Trade and other receivables 5,102 (448) 4,654 Liquid investments 2,981 (1,488) 1,493 Cash and cash equivalents 756 1,488 2,244 ---- ---- ---- Total current assets 11,089 (434) 10,655 ---- ---- ---- TOTAL ASSETS 21,962 452 22,414 ---- ---- ---- LIABILITIES Current liabilities Short-term borrowings (1,157) - (1,157) Trade and other payables (4,759) 586 (4,173) Current tax payable (1,682) - (1,682) Short-term provisions - (1,025) (1,025) ---- ---- ---- Total current liabilities (7,598) (439) (8,037) ---- ---- ---- Non-current liabilities Long-term borrowings (4,971) - (4,971) Deferred tax provision (677) 525 (152) Pensions and other post-employment benefits (846) (2,479) (3,325) Other provisions (1,479) 1,027 (452) Other non-current liabilities (267) - (267) ---- ---- ---- Total non-current liabilities (8,240) (927) (9,167) ---- ---- ---- TOTAL LIABILITIES (15,838) (1,366) (17,204) ---- ---- --- NET ASSETS 6,124 (914) 5,210 ---- ---- ---- EQUITY Share capital 1,484 - 1,484 Share premium account 288 - 288 Shares held by ESOP Trusts (2,638) 8 (2,630) Other reserves 1,928 - 1,928 Retained earnings 4,804 (917) 3,887 ---- ---- ---- 5,866 (909) 4,957 Equity minority interests 258 (5) 253 ---- ---- ---- 6,124 (914) 5,210 ---- ---- ---- Note: The analysis of these adjustments is shown on the next page. Analysis of IFRS balance sheet adjustments At 30th September 2004 Coreg Other Share- capitalisation intangible Goodwill Pensions Dividend based and assets amortisation and Other IFRS deferred payments amortisation amortisation reversal OPEBs (g) adjust- (a) (b) (c) (d) (e) (f) £m ments £m £m £m £m £m £m £m --- --- --- --- --- --- -- --- ASSETS Non-current assets Property, plant & - - - - - - (256) (256) equipment Goodwill - - - - 21 - - 21 Other intangible assets - - 117 139 - - 242 498 Investments in associates - - - - 23 - - 23 and joint ventures Other investments - - - - - - - - Deferred tax assets - 88 (38) (29) - 472 93 586 Other non-current assets - - - - - 14 - 14 --- --- --- --- --- --- -- --- Total non-current assets - 88 79 110 44 486 79 886 --- --- --- --- --- --- -- --- Current assets Inventories - - - - - - 14 14 Trade and other - - - - - (448) - (448) receivables Liquid investments - - - - - - (1,488) (1,488) Cash and cash equivalents - - - - - - 1,488 1,488 --- --- --- --- --- --- -- --- Total current assets - - - - - (448) 14 (434) --- --- --- --- --- --- -- --- TOTAL ASSETS - 88 79 110 44 38 93 452 --- --- --- --- --- --- -- --- Current liabilities Short-term borrowings - - - - - - - - Trade and other payables 571 - - - - 15 - 586 Current tax payable - - - - - - - - Short-term provisions - - - - - - (1,025) (1,025) --- --- --- --- --- --- -- --- Total current liabilities 571 - - - - 15 (1,025) (439) --- --- --- --- --- --- -- --- Non-current liabilities Long-term borrowings - - - - - - - - Deferred tax provision - - - (19) - 453 91 525 Pensions and other post- - - - - - (2,479) - (2,479) employment benefits Other provisions - - - - - 2 1,025 1,027 Other non-current - - - - - - - - liabilities --- --- --- --- --- --- -- --- Total non-current - - - (19) - (2,024) 1,116 (927) liabilities --- --- --- --- --- --- -- --- TOTAL LIABILITIES 571 - - (19) - (2,009) 91 (1,366) --- --- --- --- --- --- -- --- TOTAL NET ASSETS 571 88 79 91 44 (1,971) 184 (914) --- --- --- --- --- --- -- --- EQUITY Share capital - - - - - - - - Share premium account - - - - - - - - Shares held by ESOP Trusts - 8 - - - - - 8 Other reserves - - - - - - - - Retained earnings 571 80 79 91 44 (1,966) 184 (917) --- --- --- --- --- --- -- --- 571 88 79 91 44 (1,966) 184 (909) Equity minority interests - - - - - (5) - (5) --- --- --- --- --- --- -- --- TOTAL EQUITY 571 88 79 91 44 (1,971) 184 (914) --- --- --- --- --- --- -- --- BALANCE SHEET At 31st December 2004 IFRS Adjustments UK GAAP (Note) IFRS £m £m £m ASSETS ---- ---- ---- Non-current assets Property, plant and equipment 6,471 (274) 6,197 Goodwill 139 26 165 Computer software - 272 272 Other intangible assets 2,003 238 2,241 Investments in associates and joint ventures 187 22 209 Other investments 298 - 298 Deferred tax assets 1,537 495 2,032 Other non-current assets 234 14 248 ---- ---- ---- Total non-current assets 10,869 793 11,662 ---- ---- ---- Current assets Inventories 2,192 1 2,193 Trade and other receivables 5,538 (724) 4,814 Liquid investments 2,818 (1,306) 1,512 Cash and cash equivalents 1,161 1,306 2,467 Assets held for sale - 2 2 ---- ---- ---- Total current assets 11,709 (721) 10,988 ---- ---- ---- TOTAL ASSETS 22,578 72 22,650 ---- ---- ---- LIABILITIES Current liabilities Short-term borrowings (1,582) - (1,582) Trade and other payables (5,542) 704 (4,838) Current tax payable (1,598) - (1,598) Short-term provisions - (962) (962) ---- ---- ---- Total current liabilities (8,722) (258) (8,980) ---- ---- ---- Non-current liabilities Long-term borrowings (4,381) - (4,381) Deferred tax provision (710) 333 (377) Pensions and other post-employment benefits (785) (1,734) (2,519) Other provisions (1,534) 965 (569) Other non-current liabilities (244) - (244) ---- ---- ---- Total non-current liabilities (7,654) (436) (8,090) ---- ---- ---- TOTAL LIABILITIES (16,376) (694) (17,070) ---- ---- --- NET ASSETS 6,202 (622) 5,580 ---- ---- ---- EQUITY Share capital 1,484 - 1,484 Share premium account 304 - 304 Shares held by ESOP Trusts (2,574) 38 (2,536) Other reserves 1,930 - 1,930 Retained earnings 4,781 (655) 4,126 ---- ---- ---- 5,925 (617) 5,308 Equity minority interests 277 (5) 272 ---- ---- ---- 6,202 (622) 5,580 ---- ---- ---- Note: The analysis of these adjustments is shown on the next page. Analysis of IFRS balance sheet adjustments At 31st December 2004 Coreg Other Share- capitalisation intangible Goodwill Pensions Dividend based and assets amortisation and IFRS deferred payments amortisation amortisation reversal OPEBs Other adjust- (a) (b) (c) (d) (e) (f) (g) ments £m £m £m £m £m £m £m £m --- --- --- --- --- --- -- --- ASSETS Non-current assets Property, plant & - - - - - - (274) (274) equipment Goodwill - - - - 26 - - 26 Computer software - - - - - - 272 272 Other intangible assets - - 104 148 - - (14) 238 Investments in associates - - - - 22 - - 22 and joint ventures Other investments - - - - - - - - Deferred tax assets - 67 (34) (29) - 324 167 495 Other non-current assets - - - - - 14 - 14 --- --- --- --- --- --- -- --- Total non-current assets - 67 70 119 48 338 151 793 --- --- --- --- --- --- -- --- Current assets Inventories - - - - - - 1 1 Trade and other - - - - - (724) - (724) receivables Liquid investments - - - - - - (1,306) (1,306) Cash and cash equivalents - - - - - - 1,306 1,306 Assets held for sale - - - - - - 2 2 --- --- --- --- --- --- -- --- Total current assets - - - - - (724) 3 (721) --- --- --- --- --- --- -- --- TOTAL ASSETS - 67 70 119 48 (386) 154 72 --- --- --- --- --- --- -- --- Current liabilities Short-term borrowings - - - - - - - - Trade and other payables 683 - - - - 21 - 704 Current tax payable - - - - - - - - Short-term provisions - - - - - - (962) (962) --- --- --- --- --- --- -- --- Total current liabilities 683 - - - - 21 (962) (258) --- --- --- --- --- --- -- --- Non-current liabilities Long-term borrowings - - - - - - - - Deferred tax provision - - - (27) - 472 (112) 333 Pensions and other post- - - - - - (1,734) - (1,734) employment benefits Other provisions - - - - - 3 962 965 Other non-current - - - - - - - - liabilities --- --- --- --- --- --- -- --- Total non-current - - - (27) - (1,259) 850 (436) liabilities --- --- --- --- --- --- -- --- TOTAL LIABILITIES 683 - - (27) - (1,238) (112) (694) --- --- --- --- --- --- -- --- TOTAL NET ASSETS 683 67 70 92 48 (1,624) 42 (622) --- --- --- --- --- --- -- --- EQUITY Share capital - - - - - - - - Share premium account - - - - - - - - Shares held by ESOP Trusts - 38 - - - - - 38 Other reserves - - - - - - - - Retained earnings 683 29 70 92 48 (1,619) 42 (655) --- --- --- --- --- --- -- --- 683 67 70 92 48 (1,619) 42 (617) Equity minority interests - - - - - (5) - (5) --- --- --- --- --- --- -- --- TOTAL EQUITY 683 67 70 92 48 (1,624) 42 (622) --- --- --- --- --- --- -- --- Cash flow statements Explanation of IFRS cash flow statement adjustments 2003 Full year 2004 Quarter 1 2004 Quarter 2 2004 Half-year 2004 Quarter 3 2004 9 months 2004 Quarter 4 2004 Full year Explanation of IFRS cash flow statement adjustments The move from UK GAAP to IFRS does not change any of the cash flows of the Group. The IFRS cash flow format is similar to UK GAAP but presents various cash flows in different categories and in a different order from the UK GAAP cash flow statement. All of the IFRS accounting adjustments net out within cash generated from operations except for the intangible assets reclassification and the inclusion of liquid investments with a maturity of less than three months on acquisition, together with related exchange adjustments, within cash and cash equivalents under IFRS. CASH FLOW STATEMENT Year ended 31st December 2003 IFRS UK GAAP adjustments IFRS £m £m £m ---- ---- ---- Cash flows from operating activities Cash generated from operations 7,005 - 7,005 Taxation paid (1,917) - (1,917) ---- ---- ---- Net cash inflow from operating activities 5,088 - 5,088 ---- ---- ---- Cash flow from investing activities Purchase of tangible fixed assets (869) 123 (746) Proceeds from sale of tangible fixed assets 46 - 46 Purchase of intangible assets (193) (123) (316) Purchase of equity investments (63) - (63) Proceeds from sale of equity investments 125 - 125 Purchase of businesses, net of cash acquired (12) - (12) Disposal of businesses 3 - 3 Investment in joint ventures and associated undertakings (3) - (3) Interest received 65 130 195 Dividends from joint ventures and associated undertakings 1 - 1 ---- ---- ---- Net cash outflow from investing activities (900) 130 (770) ---- ---- ---- Cash flow from financing activities Increase in liquid investments (1,336) 963 (373) Proceeds from own shares for employee share options 26 - 26 Issue of share capital 41 - 41 Share capital purchased for cancellation (980) - (980) Other financing cash flows 82 - 82 Increase in long-term loans 1,046 - 1,046 Repayment of long-term loans (23) - (23) Net repayment of short-term loans (442) - (442) Interest paid (197) (130) (327) Dividends paid to GSK shareholders (2,333) - (2,333) Dividends paid to minority interests (84) - (84) Dividends paid on preference shares (15) - (15) ---- ---- ---- Net cash outflow from financing activities (4,215) 833 (3,382) ---- ---- ---- Exchange adjustments (25) (85) (110) ---- ---- ---- Increase in cash and cash equivalents in the year (52) 878 826 Cash and cash equivalents at beginning of year 859 146 1,005 ---- ---- ---- Cash and cash equivalents at end of year (Note) 807 1,024 1,831 ---- ---- ---- Note: Cash and cash equivalents comprise: Cash and cash equivalents 962 1,024 1,986 Overdrafts (155) - (155) ---- ---- ---- 807 1,024 1,831 ---- ---- ---- CASH FLOW STATEMENT Three months ended 31st March 2004 IFRS UK GAAP adjustments IFRS £m £m £m ---- ---- ---- Cash flows from operating activities Cash generated from operations 1,332 - 1,332 Taxation paid (271) - (271) ---- ---- ---- Net cash inflow from operating activities 1,061 - 1,061 ---- ---- ---- Cash flow from investing activities Purchase of tangible fixed assets (130) 9 (121) Proceeds from sale of tangible fixed assets 2 - 2 Purchase of intangible assets (16) (9) (25) Purchase of equity investments (4) - (4) Proceeds from sale of equity investments 3 - 3 Interest received 17 43 60 Dividends from joint ventures and associated undertakings 2 - 2 ---- ---- ---- Net cash outflow from investing activities (126) 43 (83) ---- ---- ---- Cash flow from financing activities Decrease/(increase) in liquid assets 128 (135) (7) Proceeds from own shares for employee share options 4 - 4 Issue of share capital 10 - 10 Share capital purchased for cancellation (178) - (178) Other financing cash flows 33 - 33 Purchase of Treasury shares (90) - (90) Redemption of preference shares issued by subsidiary (440) - (440) Repayment of long-term loans (4) - (4) Net repayment of short-term loans (10) - (10) Interest paid (53) (43) (96) Dividends paid to GSK shareholders (520) - (520) Dividends paid to minority interests (51) - (51) Dividends paid on preference shares (2) - (2) ---- ---- ---- Net cash outflow from financing activities (1,173) (178) (1,351) ---- ---- ---- Exchange adjustments (17) (30) (47) ---- ---- ---- Decrease in cash and cash equivalents in the period (255) (165) (420) Cash and cash equivalents at beginning of period 807 1,024 1,831 ---- ---- ---- Cash and cash equivalents at end of period (Note) 552 859 1,411 ---- ---- ---- Note: Cash and cash equivalents comprise: Cash and cash equivalents 667 859 1,526 Overdrafts (115) - (115) ---- ---- ---- 552 859 1,411 ---- ---- ---- CASH FLOW STATEMENT Three months ended 30th June 2004 IFRS UK GAAP adjustments IFRS £m £m £m ---- ---- ---- Cash flows from operating activities Cash generated from operations 1,783 - 1,783 Taxation paid (454) - (454) ---- ---- ---- Net cash inflow from operating activities 1,329 - 1,329 ---- ---- ---- Cash flow from investing activities Purchase of tangible fixed assets (197) 8 (189) Proceeds from sale of tangible fixed assets 12 - 12 Purchase of intangible assets (40) (8) (48) Purchase of equity investments (67) - (67) Proceeds from sale of equity investments 34 - 34 Disposal of interests in associates 56 - 56 Investment in joint ventures and associated undertakings (2) - (2) Interest received 29 60 89 Dividends from joint ventures and associated undertakings 2 - 2 ---- ---- ---- Net cash outflow from investing activities (173) 60 (113) ---- ---- ---- Cash flow from financing activities (Increase) /decrease in liquid assets (608) 618 10 Proceeds from own shares for employee share options 8 - 8 Issue of share capital 6 - 6 Share capital purchased for cancellation (23) - (23) Other financing cash flows (58) - (58) Purchase of Treasury shares (195) - (195) Redemption of preference shares issued by a subsidiary (49) - (49) Increase in long-term loans 1,373 - 1,373 Net repayment of short-term loans (475) - (475) Interest paid (70) (60) (130) Dividends paid to GSK shareholders (807) - (807) Dividends paid to minority interests (9) - (9) ---- ---- ---- Net cash outflow from financing activities (907) 558 (349) ---- ---- ---- Exchange adjustments 3 17 20 ---- ---- ---- Increase in cash and cash equivalents in the period 252 635 887 Cash and cash equivalents at beginning of period 552 859 1,411 ---- ---- ---- Cash and cash equivalents at end of period (Note) 804 1,494 2,298 ---- ---- ---- Note: Cash and cash equivalents comprise: Cash and cash equivalents 1,035 1,494 2,529 Overdrafts (231) - (231) ---- ---- ---- 804 1,494 2,298 ---- ---- ---- CASH FLOW STATEMENT Six months ended 30th June 2004 IFRS IFRS UK GAAP adjustments statutory £m £m £m ---- ---- ---- Cash flows from operating activities Cash generated from operations 3,115 - 3,115 Taxation paid (725) - (725) ---- ---- ---- Net cash inflow from operating activities 2,390 - 2,390 ---- ---- ---- Cash flow from investing activities Purchase of tangible fixed assets (327) 17 (310) Proceeds from sale of tangible fixed assets 14 - 14 Purchase of intangible assets (56) (17) (73) Purchase of equity investments (71) - (71) Proceeds from sale of equity investments 37 - 37 Disposal of interests in associates 56 - 56 Investment in joint ventures and associated undertakings (2) - (2) Interest received 46 103 149 Dividends from joint ventures and associated undertakings 4 - 4 ---- ---- ---- Net cash outflow from investing activities (299) 103 (196) ---- ---- ---- Cash flow from financing activities (Increase) / decrease in liquid assets (480) 483 3 Proceeds from own shares for employee share options 12 - 12 Issue of share capital 16 - 16 Share capital purchased for cancellation (201) - (201) Other financing cash flows (25) - (25) Purchase of Treasury shares (285) - (285) Redemption of preference shares issued by a subsidiary (489) - (489) Increase in long-term loans 1,373 - 1,373 Repayment of long-term loans (4) - (4) Net repayment of short-term loans (485) - (485) Interest paid (123) (103) (226) Dividends paid to GSK shareholders (1,327) - (1,327) Dividends paid to minority interests (60) - (60) Dividends paid on preference shares (2) - (2) ---- ---- ---- Net cash outflow from financing activities (2,080) 380 (1,700) ---- ---- ---- Exchange adjustments (14) (13) (27) ---- ---- ---- Increase in cash and cash equivalents in the period (3) 470 467 Cash and cash equivalents at beginning of period 807 1,024 1,831 ---- ---- ---- Cash and cash equivalents at end of period (Note) 804 1,494 2,298 ---- ---- ---- Note: Cash and cash equivalents comprise: Cash and cash equivalents 1,035 1,494 2,529 Overdrafts (231) - (231) ---- ---- ---- 804 1,494 2,298 ---- ---- ---- CASH FLOW STATEMENT Three months ended 30th September 2004 IFRS UK GAAP adjustments IFRS £m £m £m ---- ---- ---- Cash flows from operating activities Cash generated from operations 2,006 - 2,006 Taxation paid (391) - (391) ---- ---- ---- Net cash inflow from operating activities 1,615 - 1,615 ---- ---- ---- Cash flow from investing activities Purchase of tangible fixed assets (214) 19 (195) Proceeds from sale of tangible fixed assets 24 - 24 Purchase of intangible assets (77) (19) (96) Purchase of equity investments (6) - (6) Proceeds from sale of equity investments 18 - 18 Purchase of businesses, net of cash acquired (306) - (306) Interest received 22 57 79 Dividends from joint ventures and associated undertakings 4 - 4 ---- ---- ---- Net cash outflow from investing activities (535) 57 (478) ---- ---- ---- Cash flow from financing activities Decrease/(increase) in liquid assets (23) (14) (37) Proceeds from own shares for employee share options 4 - 4 Issue of share capital 9 - 9 Other financing cash flows 55 - 55 Purchase of Treasury shares (247) - (247) Decrease in long-term loans (5) - (5) Repayment of long-term loans (7) - (7) Net repayment of short-term loans 59 - 59 Interest paid (76) (57) (133) Dividends paid to GSK shareholders (1,092) - (1,092) Dividends paid to minority interests (4) - (4) ---- ---- ---- Net cash outflow from financing activities (1,327) (71) (1,398) ---- ---- ---- Exchange adjustments - 8 8 ---- ---- ---- Decrease in cash and cash equivalents in the period (247) (6) (253) Cash and cash equivalents at beginning of period 804 1,494 2,298 ---- ---- ---- Cash and cash equivalents at end of period (Note) 557 1,488 2,045 ---- ---- ---- Note: Cash and cash equivalents comprise: Cash and cash equivalents 756 1,488 2,244 Overdrafts (199) - (199) ---- ---- ---- 557 1,488 2,045 ---- ---- ---- CASH FLOW STATEMENT Nine months ended 30th September 2004 IFRS UK GAAP adjustments IFRS £m £m £m ---- ---- ---- Cash flows from operating activities Cash generated from operations 5,121 - 5,121 Taxation paid (1,116) - (1,116) ---- ---- ---- Net cash inflow from operating activities 4,005 - 4,005 ---- ---- ---- Cash flow from investing activities Purchase of tangible fixed assets (541) 36 (505) Proceeds from sale of tangible fixed assets 38 - 38 Purchase of intangible assets (133) (36) (169) Purchase of equity investments (77) - (77) Proceeds from sale of equity investments 55 - 55 Purchase of businesses, net of cash acquired (306) - (306) Disposal of businesses and interests in associates 56 - 56 Investment in joint ventures and associated undertakings (2) - (2) Interest received 68 160 228 Dividends from joint ventures and associated undertakings 8 - 8 ---- ---- ---- Net cash outflow from investing activities (834) 160 (674) ---- ---- ---- Cash flow from financing activities Decrease/(increase) in liquid assets (503) 469 (34) Proceeds from own shares for employee share options 16 - 16 Issue of share capital 25 - 25 Share capital purchased for cancellation (201) - (201) Other financing cash flows 30 - 30 Purchase of Treasury shares (532) - (532) Redemption of preference shares issued by subsidiary (489) - (489) Increase in long-term loans 1,368 - 1,368 Repayment of long-term loans (11) - (11) Net repayment of short-term loans (426) - (426) Interest paid (199) (160) (359) Dividends paid to GSK shareholders (2,419) - (2,419) Dividends paid to minority interests (64) - (64) Dividends paid on preference shares (2) - (2) ---- ---- ---- Net cash outflow from financing activities (3,407) 309 (3,098) ---- ---- ---- Exchange adjustments (14) (5) (19) ---- ---- ---- Decrease in cash and cash equivalents in the period (250) 464 214 Cash and cash equivalents at beginning of period 807 1,024 1,831 ---- ---- ---- Cash and cash equivalents at end of period (Note) 557 1,488 2,045 ---- ---- ---- Note: Cash and cash equivalents comprise: Cash and cash equivalents 756 1,488 2,244 Overdrafts (199) - (199) ---- ---- ---- 557 1,488 2,045 ---- ---- ---- CASH FLOW STATEMENT Three months ended 31st December 2004 IFRS UK GAAP adjustments IFRS £m £m £m ---- ---- ---- Cash flows from operating activities Cash generated from operations 1,406 - 1,406 Taxation paid (467) - (467) ---- ---- ---- Net cash inflow from operating activities 939 - 939 ---- ---- ---- Cash flow from investing activities Purchase of tangible fixed assets (324) 41 (283) Proceeds from sale of tangible fixed assets 15 - 15 Purchase of intangible assets (45) (41) (86) Purchase of equity investments (26) - (26) Proceeds from sale of equity investments 3 - 3 Purchase of businesses, net of cash acquired 9 - 9 Disposal of businesses and interest in associates 174 - 174 Interest received 27 62 89 Dividends from joint ventures and associated undertakings 3 - 3 ---- ---- ---- Net cash outflow from investing activities (164) 62 (102) ---- ---- ---- Cash flow from financing activities Decrease/(increase) in liquid assets 90 (109) (19) Proceeds from own shares for employee share options 7 - 7 Issue of share capital 17 - 17 Other financing cash flows 19 - 19 Purchase of Treasury shares (267) - (267) Increase in long-term loans (3) - (3) Repayment of long-term loans (4) - (4) Net repayment of short-term loans 19 - 19 Net repayment of obligations under finance leases (22) - (22) Interest paid (73) (62) (135) Dividends paid to GSK shareholders (56) - (56) Dividends paid to minority interests (9) - (9) ---- ---- ---- Net cash outflow from financing activities (282) (171) (453) ---- ---- ---- Exchange adjustments (1) (73) (74) ---- ---- ---- Decrease in cash and cash equivalents in the period 492 (182) 310 Cash and cash equivalents at beginning of period 557 1,488 2,045 ---- ---- ---- Cash and cash equivalents at end of period (Note) 1,049 1,306 2,355 ---- ---- ---- Note: Cash and cash equivalents comprise: Cash and cash equivalents 1,161 1,306 2,467 Overdrafts (112) - (112) ---- ---- ---- 1,049 1,306 2,355 ---- ---- ---- CASH FLOW STATEMENT Year ended 31st December 2004 IFRS UK GAAP adjustments IFRS £m £m £m ---- ---- ---- Cash flows from operating activities Cash generated from operations 6,527 - 6,527 Taxation paid (1,583) - (1,583) ---- ---- ---- Net cash inflow from operating activities 4,944 - 4,944 ---- ---- ---- Cash flow from investing activities Purchase of tangible fixed assets (865) 77 (788) Proceeds from sale of tangible fixed assets 53 - 53 Purchase of intangible assets (178) (77) (255) Purchase of equity investments (103) - (103) Proceeds from sale of equity investments 58 - 58 Purchase of businesses, net of cash acquired (297) - (297) Disposal of businesses and interest in associates 230 - 230 Investment in joint ventures and associated undertakings (2) - (2) Interest received 95 222 317 Dividends from joint ventures and associated undertakings 11 - 11 ---- ---- ---- Net cash outflow from investing activities (998) 222 (776) ---- ---- ---- Cash flow from financing activities Decrease/(increase) in liquid assets (413) 360 (53) Proceeds from own shares for employee share options 23 - 23 Issue of share capital 42 - 42 Share capital purchased for cancellation (201) - (201) Other financing cash flows 49 - 49 Purchase of Treasury shares (799) - (799) Redemption of preference shares issued by subsidiary (489) - (489) Increase in long-term loans 1,365 - 1,365 Repayment of long-term loans (15) - (15) Net repayment of short-term loans (407) - (407) Net repayment of obligations under finance leases (22) - (22) Interest paid (272) (222) (494) Dividends paid to GSK shareholders (2,475) - (2,475) Dividends paid to minority interests (73) - (73) Dividends paid on preference shares (2) - (2) ---- ---- ---- Net cash outflow from financing activities (3,689) 138 (3,551) ---- ---- ---- Exchange adjustments (15) (78) (93) ---- ---- ---- Decrease in cash and cash equivalents in the period 242 282 524 Cash and cash equivalents at beginning of period 807 1,024 1,831 ---- ---- ---- Cash and cash equivalents at end of period (Note) 1,049 1,306 2,355 ---- ---- ---- Note: Cash and cash equivalents comprise: Cash and cash equivalents 1,161 1,306 2,467 Overdrafts (112) - (112) ---- ---- ---- 1,049 1,306 2,355 ---- ---- ---- Statement of recognised income and expenses 2003 Full year 2004 Full year Reconciliation of movements in equity 2003 Full year 2004 Full year Reconciliation by component of equity at 1st January 2003 STATEMENT OF RECOGNISED INCOME AND EXPENSE Year ended 31st December 2003 IFRS UK GAAP adjustments IFRS £m £m £m ---- ---- ---- Exchange differences 113 14 127 Tax on exchange movements and unrealised gains (92) 2 (90) Loss from own shares for employee share schemes (39) - (39) Unrealised profit on disposal of intellectual property 7 (7) - Revaluation of goodwill due to exchange (7) - (7) Actuarial gains/(losses) on defined benefit plans - (311) (311) ---- ---- ---- Net gains/(losses) recognised directly in equity (18) (302) (320) Profit for the year 4,478 (277) 4,201 ---- ---- ---- Total recognised income and expense for the year 4,460 (579) 3,881 ---- ---- ---- STATEMENT OF RECOGNISED INCOME AND EXPENSE Year ended 31st December 2004 IFRS UK GAAP adjustments IFRS £m £m £m ---- ---- ---- Exchange differences (54) 24 (30) Tax on exchange movements and unrealised gains (73) - (73) Loss from own shares for employee share schemes (55) - (55) Goodwill written back 20 (20) - Revaluation of goodwill due to exchange 6 - 6 Unrealised loss on disposal of intellectual property (1) 1 - Actuarial gains/(losses) on defined benefit plans - 91 91 ---- ---- ---- Net gains/(losses) recognised directly in equity (157) 96 (61) Profit for the year 4,302 (394) 3,908 ---- ---- ---- Total recognised income and expense for the year 4,145 (298) 3,847 ---- ---- ---- RECONCILIATION OF EQUITY Year ended 31st December 2003 IFRS UK GAAP adjustments IFRS £m £m £m ---- ---- ---- Balance at 1st January 2003 4,647 (345) 4,302 Total recognised income and expense for the year 4,460 (579) 3,881 Issue of share capital 41 - 41 Shares purchased for cancellation (980) - (980) ESOT shares issued at cost 65 - 65 Share based payments 7 368 375 Dividends (2,374) 48 (2,326) Minority interests (62) - (62) ---- ---- ---- Balance at 31st December 2003 5,804 (508) 5,296 ---- ---- ---- RECONCILIATION OF EQUITY Year ended 31st December 2004 IFRS UK GAAP adjustments IFRS £m £m £m ---- ---- ---- Balance at 1st January 2004 5,804 (508) 5,296 Total recognised income and expense for the year 4,145 (298) 3,847 Issue of share capital 42 - 42 Shares purchased for cancellation (201) - (201) Shares purchased and held as Treasury shares (799) - (799) ESOT shares issued at cost 78 - 78 Share based payments 3 309 312 Dividends (2,402) (125) (2,527) Minority interests (468) - (468) ---- ---- ---- Balance at 31st December 2004 6,202 (622) 5,580 ---- ---- ---- RECONCILIATION OF OPENING EQUITY BY COMPONENT OF EQUITY At 1st January 2003 Shares Share held by Total Share premium ESOP Other Retained shareholders' Minority Total capital account Trusts reserves earnings equity interests equity £m £m £m £m £m £m £m £m --- --- --- --- --- ---- --- --- UK GAAP 1,506 224 (2,826) 1,905 3,031 3,840 807 4,647 IFRS adjustments (net of tax): Pensions - - - - (1,456) (1,456) - (1,456) Deferred profit on stock - - - - 249 249 - 249 Dividends - - - - 760 760 - 760 Deferred tax on Block - - - - (105) (105) - (105) assets Coreg - - - - 126 126 - 126 Other intangible assets - - - - 45 45 - 45 Share-based payments - - (5) - 5 - - - Tax on share-based - - - - 48 48 - 48 payments Other - - - - (7) (7) (5) (12) --- --- --- --- --- ---- --- --- Total IFRS adjustments - - (5) - (335) (340) (5) (345) --- --- --- --- --- ---- --- --- IFRS 1,506 224 (2,831) 1,905 2,696 3,500 802 4,302 --- --- --- --- --- ---- --- --- This information is provided by RNS The company news service from the London Stock Exchange IE

Companies

GSK (GSK)
UK 100
FTSE quotes by TradingView

Latest directors dealings

All directors dealings today