Adoption of IFRS-Part 2
Anglo American PLC
9 May 2005
PART 2
7. INDEPENDENT REVIEW REPORT TO THE BOARD OF DIRECTORS OF ANGLO AMERICAN
PLC ON THE PRELIMINARY FINANCIAL INFORMATION AND PRO FORMA FINANCIAL
INFORMATION FOR THE SIX MONTHS ENDED 30 JUNE 2004
In accordance with our engagement letter dated 6th May 2005, we have reviewed:
• the accompanying preliminary International Financial Reporting
Standards ("IFRS") consolidated financial information of Anglo American plc for
the six months ended 30 June 2004, excluding the impact of IAS 32 and IAS 39,
which comprises the consolidated income statement, the consolidated balance
sheet, the consolidated statement of changes in equity, consolidated cash flow
statement, the reconciliation of equity, the statement of changes in equity, the
statement of recognised income and expense and related notes 1 to 11
(hereinafter referred to as "the preliminary financial information"); and
• the pro forma consolidated financial information, including the impact
of IAS 32 and IAS 39, which comprises the consolidated income statement and
consolidated balance sheet (hereinafter referred to as "the pro forma financial
information").
This preliminary financial information and pro forma financial information is
the responsibility of the Company's directors. They have been prepared by
management as part of the Company's conversion to IFRS in accordance with the "
Basis of Preparation" set out in Section 3, which describes how IFRSs have been
applied under IFRS 1, including the assumptions management has made about the
standards and interpretations expected to be effective, and Section 5 which
describes the accounting policies expected to be adopted, when management
prepares its first complete set of IFRS financial statements as at 31 December
2005. In preparing that first complete set of IFRS financial statements
management expects to take the option in IFRS 1 not to restate the 2004
comparatives for IAS 32 and IAS 39. However, in order to provide comparable
information management has chosen to prepare the pro forma financial information
which assumes the application of IAS 32 and IAS 39 to transactions and financial
instruments to entities other than those disposed of in 2004 and to contracts
other than those containing embedded derivatives that no longer existed as at 1
January 2005 and the application of hedge accounting where management believes
it is appropriate to assume the relevant accounting criteria regarding
documentation and testing of effectiveness could have been met even though the
necessary documentation was not in place.
Our responsibility is to express an opinion on this financial information and
pro forma financial information based on our review. Our report has been
prepared solely for the exclusive use of the directors and solely for the
purpose of assisting them in connection with Anglo American plc's conversion of
the basis of the preparation of the financial statements to IFRSs. Our work has
been undertaken so that we might state to the directors those matters we are
required to state to them in a review report and for no other purpose. We do
not accept or assume responsibility to anyone other than the directors for our
work, for this report, or for the conclusions we have formed.
Review work performed
We conducted our review in accordance with Bulletin 1999/4 issued by the
Auditing Practices Board. A review consists principally of making enquiries of
group management and applying analytical procedures to the preliminary financial
information and pro forma financial information and underlying financial data
and, assessing whether the accounting policies and presentation have been
consistently applied unless otherwise disclosed. A review excludes audit
procedures such as tests of control and verification of assets, liabilities and
transactions. It is substantially less in scope than an audit performed in
accordance with International Standards on Auditing and therefore provides a
lower level of assurance than an audit. Accordingly, we do not express an audit
opinion on the preliminary financial information or the pro forma financial
information.
Emphasis of matter
Without modifying our review opinion, we draw attention to the fact that there
is a possibility that the accompanying preliminary financial information and pro
forma financial information may require adjustment before constituting the final
financial information and final pro forma financial information for inclusion in
the IFRS interim information for the six months ending 30 June 2005. This is
because, as set out in section 1, International Accounting Standards are subject
to on going review and possible amendment. Moreover, we draw attention to the
fact that, under IFRSs, only a complete set of financial statements comprising
an income statement, balance sheet, statement of changes in equity, cash flow
statement, together with comparative financial information and explanatory
notes, can provide a fair presentation of the group's financial position,
results of operations and cash flows in accordance with IFRSs.
Review conclusion
On the basis of our review we are not aware of any material modifications that
should be made to the accompanying preliminary financial information and pro
forma financial information for the six months ended 30 June 2004 which has been
prepared in accordance with the basis set out in the "Basis of preparation" set
out in Section 3 and accounting policies set out in Section 5.
Deloitte & Touche LLP
Chartered Accountants
London
9th May 2005
8. INDEPENDENT AUDITORS' REPORT TO THE BOARD OF DIRECTORS OF ANGLO AMERICAN
PLC ON THE PRELIMINARY FINANCIAL INFORMATION AS AT 1 JANUARY 2004
In accordance with our engagement letter dated 6th May 2005, we have audited the
accompanying preliminary International Financial Reporting Standards ("IFRS")
consolidated financial information of Anglo American plc as at 1 January 2004,
excluding the impact of IAS 32 and 39, which comprises the consolidated balance
sheet and reconciliation of equity (hereinafter referred to as "the preliminary
financial information"). This financial information is the responsibility of the
Company's directors. It has been prepared as part of the Company's conversion
to IFRS in accordance with the "Basis of Preparation" set out in Section 3,
which describes how IFRSs have been applied under IFRS 1, including the
assumptions management has made about the standards and interpretations expected
to be effective, and Section 5 which describes the accounting policies expected
to be adopted, when management prepares its first complete set of IFRS financial
statements as at 31 December 2005. Our responsibility is to express an opinion
on this financial information based on our audit.
Our report has been prepared solely for the exclusive use of the directors and
solely for the purpose of assisting them in connection with Anglo American plc's
conversion of the basis of the preparation of the financial statements to IFRSs.
Our work has been undertaken so that we might state to the directors those
matters we are required to state to them in an auditors' report and for no other
purpose. We do not accept or assume responsibility to anyone other than the
directors for our work, for this report, or for the opinions we have formed.
Basis of audit opinion
We conducted our audit in accordance with United Kingdom auditing standards
issued by the Auditing Practices Board. Those Standards require that we plan and
perform the audit to obtain reasonable assurance about whether the preliminary
financial information is free from material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures in
the preliminary financial information. An audit also includes assessing the
accounting principles used and significant estimates made by management, as well
as evaluating the overall presentation of the preliminary financial information.
We believe that our audit provides a reasonable basis for our opinion.
Emphasis of matter
Without qualifying our audit opinion, we draw attention to the fact that there
is a possibility that the accompanying preliminary financial information may
require adjustment before constituting the final financial information. This is
because, as set out in section 1, International Accounting Standards are subject
to on going review and possible amendment. Moreover, we draw attention to the
fact that, under IFRS, only a complete set of financial statements comprising an
income statement, balance sheet, statement of changes in equity, cash flow
statement, together with comparative financial information and explanatory
notes, can provide a fair presentation of the Group's financial position,
results of operations and cash flows in accordance with IFRSs.
Opinion
In our opinion, the accompanying preliminary financial information as at 1
January 2004 has been prepared, in all material respects, in accordance with the
basis set out in the "Basis of preparation" set out in Section 3 and accounting
policies set out in Section 5.
Deloitte & Touche LLP
Chartered Accountants
London
9th May 2005
Appendix I - Pro forma IAS 32 and 39 Financial Information
Accounting policies
Financial assets and financial liabilities are recognised on the Group's balance
sheet when the Group becomes a party to the contractual provisions of the
instrument.
Trade receivables
Trade receivables do not carry any interest and are stated at their nominal
value as reduced by appropriate allowances for estimated irrecoverable amounts.
Trade payables
Trade payables are not interest bearing and are stated at their nominal value.
Equity instruments
Equity instruments issued by the Company are recorded at the proceeds received,
net of direct issue costs.
Investments
Investments, other than investments in joint ventures and associates, are
initially recorded at cost. At subsequent reporting dates, financial assets
that the Group has the expressed intention and ability to hold to maturity ("
held-to-maturity") are measured at amortised cost, less any impairment. The
amortisation of any discount or premium on the acquisition of a held-to-maturity
investment is recognised in the income statement in each period using the
effective interest method.
Investments other than those classified as held-to-maturity are classified as
either "fair value through profit or loss" which includes investments held for
trading as a sub-category or "available-for-sale" investments, other than "
held-to-maturity" investments, are measured at each reporting date at fair
value. Where investments are held for trading purposes, unrealised gains and
losses are included in the income statement account for the period. For
available-for-sale investments, unrealised gains and losses are recognised in
equity, until the security is disposed or impaired, at which time the cumulative
gain or loss previously recognised in equity is included in the income statement
account.
Financial liability and equity
Financial liabilities and equity instruments are classified and accounted for as
debt or equity according to the substance of the contractual arrangements
entered into. An equity instrument is any contract that evidences a residual
interest in the assets of the group after deducting all of its liabilities.
Convertible bonds
Convertible bonds denominated in the functional currency of the entity issuing
the bond, are regarded as compound instruments, consisting of a liability and an
equity component. At the date of issue, the fair value of the liability
component is estimated using the prevailing market interest rate for similar
non-convertible debt and is recorded within borrowings. The difference between
the proceeds of issue of the convertible bond and the fair value assigned to the
liability component, representing the embedded option to convert the liability
into equity of the Group, is included in equity.
Where the embedded option is in a convertible bond denominated in a currency
other than the functional currency of the entity issuing the bond, the option is
classified as a liability, in accordance with IFRIC guidance issued in their
published update following their April 2005 meeting. The option is marked to
market with subsequent gains and losses being recorded through the income
statement within "net finance costs".
Issue costs are apportioned between the liability and equity components of the
convertible bonds where appropriate based on their relative carrying amounts at
the date of issue. The portion relating to the equity component is charged
directly against equity.
The interest expense on the liability component is calculated by applying the
prevailing market interest rate for similar non-convertible debt to the
liability component of the instrument. The difference between this amount and
the interest paid is added to the carrying amount of the convertible bond.
Bank borrowings
Interest-bearing bank loans and overdrafts are recorded at the proceeds
received, net of direct transaction costs. Finance charges, including premiums
payable on settlement or redemption and direct issue costs, are accounted for on
an accruals basis and charged to the income statement using the effective
interest method and are added to the carrying amount of the instrument to the
extent that they are not settled in the period in which they arise.
Derivative financial instruments and hedge accounting
In order to hedge its exposure to foreign exchange, interest rate and commodity
price risk, the Group enters into forward, option and swap contracts. The Group
does not use derivative financial instruments for speculative purposes.
All derivatives are held at fair value in the balance sheet within "other
financial assets" or "other financial liabilities", and are classified as
current or non current depending on the maturity of the derivative.
Changes in the fair value of derivative financial instruments that are
designated and effective as hedges of future cash flow are recognised directly
in equity. The gain or loss relating to the ineffective portion is recognised
immediately in the income statement account. If the cash flow hedge of a firm
commitment or forecasted transaction results in the recognition of an asset or a
liability, then, at the time the asset or liability is recognised, the
associated gains or losses on the derivative that had previously been recognised
in equity are included in the initial measurement of the asset or liability. For
hedges that do not result in the recognition of an asset or a liability, amounts
deferred in equity are recognised in the income statement in the same period in
which the hedged item affects net profit or loss.
For an effective hedge of an exposure to changes in fair value, the hedged item
is adjusted for changes in fair value attributable to the risk being hedged with
the corresponding entry in profit or loss. Gains or losses from re-measuring the
derivative, or for non-derivatives the foreign currency component of its
carrying amount, are recognised in profit or loss.
The gain or loss on hedging instruments relating to the effective portion of a
net investment hedge is recognised in equity. The ineffective portion is
recognised immediately in the income statement account. Gains or losses
accumulated in equity are included in the income statement account when the
foreign operations are disposed of.
Changes in the fair value of any derivative instrument that are not hedge
accounted are recognised immediately in the income statement account.
Hedge accounting is discontinued when the hedging instrument expires or is sold,
terminated, or exercised, or no longer qualifies for hedge accounting. At that
time, any cumulative gain or loss on the hedging instrument recognised in equity
is retained in equity until the forecast transaction occurs. If a hedge
transaction is no longer expected to occur, the net cumulative gain or loss
previously recognised in equity is included in the income statement of the
period.
Derivatives embedded in other financial instruments or other host contracts are
treated as separate derivatives when their risks and characteristics are not
closely related to those of their host contracts and the host contracts are not
carried at fair value with unrealised gains or losses reported in the income
statement.
Appendix I Pro forma IAS 32 and IAS 39 financial information
Pro forma consolidated income statement for the year ended 31 December 2004
IAS 32 and 39 IFRS
US$ million IFRS(1) adjustments pro forma
Group turnover 26,268 57 26,325
Total operating costs (22,627) (185) (22,812)
Operating exceptional items 25 (66) (41)
Group operating profit 3,666 (194) 3,472
Net income from associates 550 1 551
Total profit from operations and associates 4,216 (193) 4,023
Non-operating exceptional items 1,015 (23) 992
Net finance costs (367) (56) (423)
Profit before tax 4,864 (272) 4,592
Income tax expense (923) 78 (845)
Profit for the financial year 3,941 (194) 3,747
Attributable to
Minority interests 440 (55) 385
Equity shareholders of the Company 3,501 (139) 3,362
Total dividends paid and proposed (827) - (827)
Retained profit 2,674 (139) 2,535
(1) Excludes the impact of IAS 32 and IAS 39.
Pro forma IAS 32 and IAS 39 consolidated balance sheet as at 31 December 2004
IAS 32 and 39 IFRS
US$ million IFRS(1) adjustments pro forma
Intangible fixed assets 2,644 - 2,644
Tangible fixed assets 33,172 (153) 33,019
Biological assets 374 - 374
Environmental rehabilitation trust 237 - 237
Investments in associates 3,486 4 3,490
Financial asset investments 1,084 58 1,142
Deferred tax assets 128 (1) 127
Other financial assets (derivatives) - 675 675
Other non current assets 66 - 66
Total non current assets 41,191 583 41,774
Stocks 3,549 - 3,549
Trade and other receivables 5,534 (86) 5,448
Current tax assets 220 - 220
Other financial assets (derivatives) - 670 670
Current asset investments 2 - 2
Cash and cash equivalents 2,955 - 2,955
Total current assets 12,260 584 12,844
Total assets 53,451 1,167 54,618
Short term borrowings 3,383 56 3,439
Trade and other payables 5,368 (78) 5,290
Current tax liabilities 831 (1) 830
Other financial liabilities (derivatives) - 635 635
Total creditors due within one year 9,582 612 10,194
Medium and long term borrowings 7,817 143 7,960
Retirement benefit obligations 1,201 - 1,201
Other financial liabilities (derivatives) - 611 611
Deferred tax liabilities 5,566 (86) 5,480
Provisions for liabilities and charges 1,328 - 1,328
Total long term liabilities 15,912 668 16,580
Total liabilities 25,494 1,280 26,774
Net assets 27,957 (113) 27,844
Equity
Called-up share capital 747 - 747
Share premium account 1,633 - 1,633
Other reserves 3,091 222 3,313
Retained earnings 17,898 (187) 17,711
Total shareholders' equity 23,369 35 23,404
Minority interests 4,588 (148) 4,440
Total equity 27,957 (113) 27,844
(1) Excludes the impact of IAS 32 and IAS 39.
Pro forma IAS 32 and IAS 39 consolidated income statement for the six months
ended 30 June 2004
IAS 32 and 39 IFRS
US$ million adjustments pro forma
IFRS(1)
Group turnover 12,346 11 12,357
Total operating costs (10,588) (90) (10,678)
Operating exceptional items - (1) (1)
Group operating profit 1,758 (80) 1,678
Net income from associates 330 14 344
Total profit from operations and associates 2,088 (66) 2,022
Non-operating exceptional items 1,005 (18) 987
Net finance costs (161) (20) (181)
Profit before tax 2,932 (104) 2,828
Income tax expense (516) 55 (461)
Profit for the financial period 2,416 (49) 2,367
Attributable to
Minority interests 190 (13) 177
Equity shareholders of the Company 2,226 (36) 2,190
Total dividends paid and proposed (554) - (554)
Retained profit 1,672 (36) 1,636
(1) Excludes the impact of IAS 32 and IAS 39.
Pro forma IAS 32 and IAS 39 consolidated balance sheet as at 30 June 2004
IAS 32 and 39 IFRS
adjustments pro forma
US$ million IFRS(1)
Intangible fixed assets 2,501 - 2,501
Tangible fixed assets 30,227 (89) 30,138
Biological assets 374 - 374
Environmental rehabilitation trust 182 - 182
Investments in associates 3,386 22 3,408
Financial asset investments 1,197 53 1,250
Deferred tax assets 97 5 102
Other financial assets (derivatives) - 354 354
Total non current assets 37,964 345 38,309
Stocks 3,148 - 3,148
Trade and other receivables 5,041 (12) 5,029
Current tax assets 192 - 192
Other financial assets (derivatives) - 379 379
Current asset investments 75 - 75
Cash and cash equivalents 2,495 - 2,495
Total current assets 10,951 367 11,318
Total assets 48,915 712 49,627
Short term borrowings 3,266 (1) 3,265
Trade and other payables 4,732 6 4,738
Current tax liabilities 679 - 679
Other financial liabilities (derivatives) - 482 482
Total creditors due within one year 8,677 487 9,164
Medium and long term borrowings 8,258 (115) 8,143
Retirement benefit obligations 1,081 - 1,081
Other financial liabilities (derivatives) - 465 465
Deferred tax liabilities 5,049 (23) 5,026
Provisions for liabilities and charges 1,155 (87) 1,068
Total long term liabilities 15,543 240 15,783
Total liabilities 24,220 727 24,947
Net assets 24,695 (15) 24,680
Equity
Called-up share capital 746 - 746
Share premium account 1,609 - 1,609
Other reserves 1,300 176 1,476
Retained earnings 16,900 (78) 16,822
Total shareholders' equity 20,555 98 20,653
Minority interests 4,140 (113) 4,027
Total equity 24,695 (15) 24,680
(1) Excludes the impact of IAS 32 and IAS 39.
Pro forma IAS 32 and IAS 39 reconciliation with detailed adjustments -
consolidated income statement for the year ended 31 December 2004
US$ million IFRS(1) Financial Cash flow Convertible Other IFRS
asset fair hedge Derivatives debt adjustments pro forma
value (2)
Group turnover 26,268 - - 10 - 47 26,325
Total operating costs (22,627) 2 - (140) - (47) (22,812)
Operating exceptional items 25 - - (66) - - (41)
Group operating profit 3,666 2 - (196) - - 3,472
Net income from associates 550 (4) 15 (10) - - 551
Total profit from operations and 4,216 (2) 15 (206) - - 4,023
associates
Non-operating exceptional items 1,015 (51) - - - 28 992
Net finance costs (367) - - (47) (14) 5 (423)
Profit before tax 4,864 (53) 15 (253) (14) 33 4,592
Income tax expense (923) 8 1 64 8 (3) (845)
Profit for the financial year 3,941 (45) 16 (189) (6) 30 3,747
Attributable to
Minority interests 440 1 1 (62) 6 (1) 385
Equity shareholders of the Company 3,501 (46) 15 (127) (12) 31 3,362
Total dividends paid and proposed (827) - - - - - (827)
Retained profit 2,674 (46) 15 (127) (12) 31 2,535
(1) Excludes the impact of IAS 32 and IAS 39.
(2) Includes any resulting write down to asset carrying values following the
recognition of embedded derivatives.
Pro forma IAS 32 and IAS 39 reconciliation with detailed adjustments -
consolidated net assets as at 31 December 2004
US$ million IFRS(1) Financial Cash Fair Convertible Other IFRS
asset fair flow value Derivatives debt adjustments pro forma
value hedge hedge (2)
Intangible fixed assets 2,644 - - - - - - 2,644
Tangible fixed assets 33,172 - (2) - (151) - -33,019
Biological assets 374 - - - - - - 374
Environmental rehabilitation trust 237 - - - - - - 237
Investments in associates 3,486 2 - - 2 - - 3,490
Financial asset investments 1,084 58 - - - - - 1,142
Deferred tax assets 128 - - - (1) - - 127
Other financial assets (derivatives) - - 187 2 486 - - 675
Other non current assets 66 - - - - - - 66
Total non current assets 41,191 60 185 2 336 - -41,774
Stocks 3,549 - - - - - - 3,549
Trade and other receivables 5,534 - 8 (5) (80) - (9) 5,448
Current tax assets 220 - - - - - - 220
Other financial assets (derivatives) - - 31 4 635 - - 670
Current asset investments 2 - - - - - - 2
Cash and cash equivalents 2,955 - - - - - - 2,955
Total current assets 12,260 - 39 (1) 555 - (9) 12,844
Total assets 53,451 60 224 1 891 - (9) 54,618
Short term borrowings 3,383 - - - 56 - - 3,439
Trade and other payables 5,368 - (12) (1) (64) - (1) 5,290
Current tax liabilities 831 - - - (1) - - 830
Other financial liabilities - - 17 12 614 - (8) 635
(derivatives)
Total creditors due within one year 9,582 - 5 11 605 - (9)10,194
Medium and long term borrowings 7,817 - - (11) 288 (134) - 7,960
Retirement benefit obligations 1,201 - - - - - - 1,201
Other financial liabilities - - 481 2 73 55 - 611
(derivatives)
Deferred tax liabilities 5,566 3 (103) - (7) 19 2 5,480
Provisions for liabilities and charges 1,328 - - - - - - 1,328
Total long term liabilities 15,912 3 378 (9) 354 (60) 2 16,580
Total liabilities 25,494 3 383 2 959 (60) (7) 26,774
Net assets 27,957 57 (159) (1) (68) 60 (2) 27,844
(1) Excludes the impact of IAS 32 and IAS 39.
(2) Includes any resulting write down to asset carrying values following the
recognition of embedded derivatives.
Pro forma IAS 32 and IAS 39 reconciliation with detailed adjustments -
consolidated income statement for the six months ended 30 June 2004
US$ million IFRS(1) Financial Cash flow Embedded Convertible Other IFRS
asset fair hedge derivatives debt adjustments pro forma
value (2) (3)
Group turnover 12,346 - - (13) - 24 12,357
Total operating costs (10,588) 1 - (67) - (24) (10,678)
Operating exceptional items - - - - - (1) (1)
Group operating profit 1,758 1 - (80) - (1) 1,678
Net income from associates 330 (3) 15 2 - - 344
Total profit from operations and associates 2,088 (2) 15 (78) - (1) 2,022
Non-operating exceptional items 1,005 (48) - - - 30 987
Net finance costs (161) - 3 (41) 21 (3) (181)
Profit before tax 2,932 (50) 18 (119) 21 26 2,828
Income tax expense (516) 7 - 39 4 5 (461)
Profit for the financial period 2,416 (43) 18 (80) 25 31 2,367
Attributable to
Minority interests 190 - - (33) 17 3 177
Equity shareholders of the Company 2,226 (43) 18 (47) 8 28 2,190
Total dividends paid and proposed (554) - - - - - (554)
Retained profit 1,672 (43) 18 (47) 8 28 1,636
(1) Excludes the impact of IAS 32 and IAS 39.
(2) Includes any resulting write down to asset carrying values following the
recognition of embedded derivatives.
(3) Primarily comprises $30 million exceptional gain arising on deemed disposal
of AngloGold.
Pro forma IAS 32 and IAS 39 reconciliation with detailed adjustments -
consolidated net assets as at 30 June 2004
US$ million IFRS(1) Financial Cash Fair Embedded Convertible Other IFRS
asset fair flow value derivatives debt adjustments pro forma
value hedge hedge (2)
Intangible fixed assets 2,501 - - - - - - 2,501
Tangible fixed assets 30,227 - - - (89) - - 30,138
Biological assets 374 - - - - - - 374
Environmental rehabilitation trust 182 - - - - - - 182
Investments in associates 3,386 3 - - 18 - 1 3,408
Financial asset investments 1,197 54 - - - - (1) 1,250
Deferred tax assets 97 - 4 - 1 - - 102
Other financial assets (derivatives) - - 142 9 203 - - 354
Total non current assets 37,964 57 146 9 133 - - 38,309
Stocks 3,148 - - - - - - 3,148
Trade and other receivables 5,041 - (8) 5 (8) - (1) 5,029
Current tax assets 192 - - - - - - 192
Other financial assets (derivatives) - 1 50 13 315 - - 379
Current asset investments 75 - - - - - - 75
Cash and cash equivalents 2,495 - - - - - - 2,495
Total current assets 10,951 1 42 18 307 - (1) 11,318
Total assets 48,915 58 188 27 440 - (1) 49,627
Short term borrowings 3,266 - - - (1) - - 3,265
Trade and other payables 4,732 - (2) 7 1 - - 4,738
Current tax liabilities 679 - - - - - - 679
Other financial liabilities - - 125 13 344 - - 482
(derivatives)
Total creditors due within one year 8,677 - 123 20 344 - - 9,164
Medium and long term borrowings 8,258 - (14) (44) 99 (156) - 8,143
Retirement benefit obligations 1,081 - - - - - - 1,081
Other financial liabilities - - 300 49 74 42 - 465
(derivatives)
Deferred tax liabilities 5,049 6 19 2 (74) 24 - 5,026
Provisions for liabilities and charges 1,155 - (72) - (15) - - 1,068
Total long term liabilities 15,543 6 233 7 84 (90) - 15,783
Total liabilities 24,220 6 356 27 428 (90) - 24,947
Net assets 24,695 52 (168) - 12 90 (1) 24,680
(1) Excludes the impact of IAS 32 and IAS 39.
(2) Includes any resulting write down to asset carrying values following the
recognition of embedded derivatives.
Appendix II Reconciliation from UK GAAP to IFRS with detailed adjustments -
consolidated income statement for the year ended 31 December 2004
As IAS IAS IAS IAS IAS IAS IFRS De Other Other IFRS(6)
previously 10 12 19 21(1) 36(2) 41 2 Beers reclassif-adjustments
reported IAS UK GAAP (3) ication (5)
under 31 revised (4)
US$ million UK GAAP
Group turnover 24,930 1,195 26,125 - - - - - - - - - 143 26,268
Total operating (21,869) (749) (22,618) - (30) (1) - 179 (20) (24) - 33 (146) (22,627)
costs
Operating 25 - 25 - - - - - - - - - - 25
exceptional items
Group operating 3,086 446 3,532 - (30) (1) - 179 (20) (24) - 33 (3) 3,666
profit
Share of joint 446 (446) - - - - - - - - - - - -
ventures' operating
profit
Share of associates' 948 - 948 - - - - - - - (586)(362) - -
operating profit
Net income from - - - - 1 (3) - 42 - - 288 229 (7) 550
associates
Total profit from
operations and
associates 4,480 - 4,480 - (29) (4) - 221 (20) (24) (298)(100) (10) 4,216
Non-operating 520 - 520 - - - 30 - (1) - 33 427 6 1,015
exceptional items
Net finance costs (359) - (359) - - 5 - - - (26) 9 4 (367)
Profit before tax 4,641 - 4,641 - (29) 1 30 221 (21) (24) (291) 336 - 4,864
Income tax expense (1,279) - (1,279) - 69 (1) - - 6 (1) 209 82 (8) (923)
Profit for the 3,362 - 3,362 - 40 - 30 221 (15) (25) (82) 418 (8) 3,941
financial year
Attributable to
Minority interests 449 - 449 - (1) - - 16 6 (4) (13) (5) (8) 440
Equity shareholders 2,913 - 2,913 - 41 - 30 205 (21) (21) (69) 423 - 3,501
of the Company
Total dividends paid (1,007) - (1,007) 180 - - - - - - - - - (827)
and proposed
Retained profit 1,906 - 1,906 180 41 - 30 205 (21) (21) (69) 423 - 2,674
(1) Recycling of CTA on disposal of non USD operations.
(2) Reversal of goodwill amortisation.
(3) Comprises the translation of US dollar De Beers' preference shares and the
reclassification of profit, interest, tax and underlying minority interest on to
the one line in accordance with IAS 28.
(4) Largely comprises the reclassification of $427 million of unrealised gains
through the income statement and change in presentation of associates.
(5) Other adjustments include the first time consolidation of a partnership that
was previously proportionally consolidated.
(6) IFRS restated information excludes the impact of IAS 32 and IAS 39.
Reconciliation of UK GAAP to IFRS with detailed adjustments - consolidated net
assets as at 31 December 2004
As IAS IAS IAS IAS IAS IAS 36 IAS IFRS De Other IFRS(6)
previously 10 12 19 21(1) 36(2) (3) 41 2 Beers adjustments
reported IAS UK GAAP (4) (5)
under 31 revised
US$ million UK GAAP
Intangible fixed assets 2,590 17 2,607 - 47 - 21 (239) 179 - - - 29 2,644
Tangible fixed assets 31,155 1,534 32,689 - 819 - - - - (332) - - (4) 33,172
Biological assets - - - - - - - - - 374 - - - 374
Environmental - - - - - - - - - - - - 237 237
rehabilitation trust
Investments in 4,346 1 4,347 - (20) (128) - 25 42 - - (770) (10) 3,486
associates
Fixed asset investments 889 (21) 868 - (4) - - - - - - 526 (306) 1,084
Deferred tax assets - - - - (5) 32 - - - - 5 - 96 128
Other non current - - - - - 2 - - - - - - 64 66
assets
Share of joint ventures 1,496 (1,496) - - - - - - - - - - - -
Total non current 40,476 35 40,511 - 837 (94) 21 (214) 221 42 5 (244) 106 41,191
assets
Stocks 3,401 137 3,538 - - - - - - (23) - - 34 3,549
Trade and other 5,449 219 5,668 - - (176) - - - - 2 26 14 5,534
receivables
Current tax assets 219 1 220 - - - - - - - - - - 220
Current asset 575 - 575 - - - - - - - - - (573) 2
investments
Cash and cash 2,086 296 2,382 - - - - - - - - - 573 2,955
equivalents
Total current assets 11,730 653 12,383 - (176) - - - (23) 2 26 48 12,260
Total assets 52,206 688 52,894 - 837 (270) 21 (214) 221 19 7 (218) 154 53,451
- - -
Short term borrowings 3,333 50 3,383 - - - - - - - - - - 3,383
Trade and other 5,984 129 6,113 (815) - - - - - - (2) - 72 5,368
payables
Current tax liabilities 836 15 851 - - - - - - - - (20) 831
Total creditors due 10,153 194 10,347 (815) - - - - - - (2) - 52 9,582
within one year
Medium and long term 7,449 368 7,817 - - - - - - - - - - 7,817
borrowings
Retirement benefit 753 5 758 - - 448 - - - - - - (5) 1,201
obligations
Deferred tax 2,908 130 3,038 - 2,492 (86) - - - 5 (3) - 120 5,566
liabilities
Provisions for 1,325 (9) 1,316 - - (4) - - - - 11 - 5 1,328
liabilities and charges
Total long term 12,435 494 12,929 - 2,492 358 - - - 5 8 - 120 15,912
liabilities
Total liabilities 22,588 688 23,276 (815) 2,492 358 - - - 5 6 - 172 25,494
Net assets(7) 29,618 - 29,618 815 (1,655) (628) 21 (214) 221 14 1 (218) (18) 27,957
(1) Retranslation of non USD goodwill acquired post 1 January 2004.
(2) Net adjustment of goodwill impairment and write back of negative goodwill
on transition.
(3) Reversal of goodwill amortisation.
(4) Comprises the reclassification of the US dollar De
Beers' preference shares as a fixed asset investment and the currency loss
recognised on their translation.
(5) Other adjustments include the first time consolidation of a
partnership that was previously proportionally consolidated, the
reclassification of certain current asset investments as cash equivalents
and the reclassification of funds held to cover environmental
rehabilitation costs from fixed asset investments.
(6) IFRS restated information excludes the impact of IAS 32 and IAS 39.
(7) Excludes minority interests previously reported under UK GAAP as under IFRS
these are presented within equity.
Reconciliation from UK GAAP to IFRS with detailed adjustments - consolidated
income statement for the six months ended 30 June 2004
As IAS IAS IAS IAS IAS IFRS 2 De Other Other IFRS
previously 10 12 19 36(1) 41 Beers reclass- adjustments restated
reported IAS UK GAAP ification (4)
under 31 revised (2) (3)
US$ million UK GAAP
Group turnover 11,786 496 12,282 - - - - - - - - 64 12,346
Total operating costs (10,279) (329) (10,608) - (1) 9 92 (5) (20) - 11 (66) (10,588)
Operating exceptional items - - - - - - - - - - - - -
Group operating profit 1,507 167 1,674 - (1) 9 92 (5) (20) - 11 (2) 1,758
Share of joint ventures' 167 (167) - - - - - - - - - - -
operating profit
Share of associates' 574 - 574 - - - - - - (350) (224) - -
operating profit
Net income from associates - - - - - 2 20 - - 165 143 - 330
Total profit from
operations and associates 2,248 - 2,248 - (1) 11 112 (5) (20)(185) (70) (2) 2,088
Non-operating exceptional 535 - 535 - - - - (1) - 42 424 5 1,005
items
Net finance costs (191) - (191) - - - - - 11 18 1 (161)
Profit before tax 2,592 - 2,592 - (1) 11 112 (6) (20) (132) 372 4 2,932
Income tax expense (686) - (686) - 5 (3) - 1 2 122 43 - (516)
Profit for the financial 1,906 - 1,906 - 4 8 112 (5) (18) (10) 415 4 2,416
period
Attributable to
Minority interests 197 - 197 - 2 - 8 (1) (4) (5) (6) (1) 190
Equity shareholders of
the Company 1,709 - 1,709 - 2 8 104 (4) (14) (5) 421 5 2,226
Total dividends paid and (273) - (273) (281) - - - - - - - - (554)
proposed
Retained profit 1,436 - 1,436 (281) 2 8 104 (4) (14) (5) 421 5 1,672
(1) Reversal of goodwill amortisation.
(2) Largely comprises the reclassification of $424 million of unrealised gains
through the income statement and the change in presentation of associates.
(3) Other adjustments include the first time consolidation of a partnership that
was previously proportionally consolidated.
(4) IFRS restated information excludes the impact of IAS 32 and IAS 39.
Reconciliation of UK GAAP to IFRS with detailed adjustments - consolidated net
assets as at 30 June 2004
As IAS IAS IAS IAS IAS IAS IFRS 2 De Other IFRS
previously 10 12 19 36(1) 36(2) 41 Beers adjustments (5)
reported IAS UK GAAP (3) (4)
under 31 revised
US$ million UK GAAP
Intangible fixed
assets 2,600 14 2,614 - 24 - (239) 92 - - - 10 2,501
Tangible fixed assets 28,227 1,544 29,771 - 793 - - - (343) - - 6 30,227
Biological assets - - - - - - - - 374 - - - 374
Environmental - - - - - - - - - - - 182 182
rehabilitation trust
Investments in 4,217 (9) 4,208 - (19)(156) 25 20 - - (697) 5 3,386
associates
Fixed asset investments 844 17 861 - - - - - - - 525 (189) 1,197
Deferred tax assets - - - - 14 30 - - - 6 - 47 97
Share of joint ventures 1,371 (1,371) - - - - - - - - - - -
Total non current 37,259 195 37,454 - 812 (126) (214) 112 31 6 (172) 61 37,964
assets
Stocks 2,986 131 3,117 - - - - - 3 - - 28 3,148
Trade and other 5,034 122 5,156 - - (165) - - - 6 29 15 5,041
receivables
Current tax assets 191 1 192 - - - - - - - - - 192
Current asset 1,393 4 1,397 - - - - - - - - (1,322) 75
investments
Cash and cash 1,039 134 1,173 - - - - - - - - 1,322 2,495
equivalents
Total current assets 10,643 392 11,035 - - (165) - - 3 6 29 43 10,951
Total assets 47,902 587 48,489 - 812 (291) (214) 112 34 12 (143) 104 48,915
Short term borrowings 3,196 70 3,266 - - - - - - - - - 3,266
Trade and other 4,908 107 5,015 (349) - 1 - - - 5 - 60 4,732
payables
Current tax liabilities 677 6 683 - 3 - - - - - (7) 679
Total creditors due 8,781 183 8,964 (349) - 4 - - - 5 - 53 8,677
within one year
Medium and long term 7,966 290 8,256 - - - - - - - - 2 8,258
borrowings
Retirement benefit 703 6 709 - - 371 - - - - - 1 1,081
obligations
Deferred tax 2,606 99 2,705 - 2,364 (77) - - 10 (2) - 49 5,049
liabilities
Provisions for 1,155 9 1,164 - - (4) - - - (5) - - 1,155
liabilities and charges
Total long term 12,430 404 12,834 - 2,364 290 - - 10 (7) - 52 15,543
liabilities
Total liabilities 21,211 587 21,798 (349) 2,364 294 - - 10 (2) - 105 24,220
Net assets(6) 26,691 - 26,691 349 (1,552) (585) (214)112 24 14 (143) (1) 24,695
(1) Net adjustment of goodwill impairment and write back of negative goodwill
on transition.
(2) Reversal of goodwill amortisation.
(3) Comprises the reclassification of the US dollar De Beers' preference shares
as a fixed asset investment and the currency loss recognised on their
translation.
(4) Other adjustments include the first time consolidation of a partnership that
was previously proportionally consolidated, the reclassification of certain
current asset investments as cash equivalents and the reclassification of funds
held to cover environmental rehabilitation costs from fixed asset
investments.
(5) IFRS restated information excludes the impact of IAS 32 and IAS 39.
(6) Excludes minority interests previously reported under UK GAAP as under IFRS
these are presented within equity.
Reconciliation of UK GAAP to IFRS with detailed adjustments - consolidated net
assets as at 1 January 2004
US$ million As De Other
previously Beers adjustments
reported UK GAAP (2)
under UK revised
GAAP IAS 31 IAS 10 IAS 12 IAS 19 IAS 36 IAS IFRS 2 IFRS
(1) 41 (3)
Intangible fixed assets 2,267 127 2,394 - - - (239) - - - 15 2,170
Tangible fixed assets 24,379 1,700 26,079 - - - - (286) - - 3 25,796
Biological assets - - - - - - - 346 - - - 346
Environmental - - - - - - - - - - 190 190
rehabilitation trust
Investments in associates 4,804 44 4,848 - (20) (158) 25 - - (866) 9 3,838
Fixed asset investments 772 9 781 - - - - - - 701 (200) 1,282
Deferred tax assets - - - - 14 29 - - 8 - 49 100
Share of joint ventures 1,630 (1,630) - - - - - - - - - -
Total non current assets 33,852 250 34,102 - (6) (129) (214) 60 8 (165) 66 33,722
Stocks 2,744 125 2,869 - - - - (23) - - 22 2,868
Trade and other receivables 4,334 146 4,480 - - (166) - - - 35 12 4,361
Current tax assets 49 - 49 - - - - - - - - 49
Current asset investments 1,032 - 1,032 - - - - - - -(1,007) 25
Cash and cash equivalents 1,094 116 1,210 - - - - - - - 1,007 2,217
Total current assets 9,253 387 9,640 - - (166) - (23) - 35 34 9,520
Total assets 43,105 637 43,742 - (6) (295) (214) 37 8 (130) 100 43,242
-
Short term borrowings 4,094 80 4,174 - - - - - - - - 4,174
Trade and other payables 4,777 123 4,900 (622) - - - - - - 52 4,330
Current tax liabilities 447 5 452 - - - - - - - (8) 444
Total creditors due within 9,318 208 9,526 (622) - - - - - - 44 8,948
one year
Medium and long term 6,665 330 6,995 - - - - - - - 2 6,997
borrowings
Retirement benefit 681 6 687 - - 358 - - - - 1 1,046
obligations
Deferred tax liabilities 2,330 80 2,410 - 1,479 (73) - 11 (1) - 48 3,874
Provisions for liabilities 943 13 956 - - (4) - - 3 - (1) 954
and charges
Total long term liabilities 10,619 429 11,048 - 1,479 281 - 11 2 - 50 12,871
Total liabilities 19,937 637 20,574 (622) 1,479 281 - 11 2 - 94 21,819
Net assets(4) 23,168 - 23,168 622 (1,485) (576) (214) 26 6 (130) 6 21,423
(1) Net adjustment of goodwill impairment and write back of negative
goodwill on transition.
(2) Other adjustments include the first time consolidation of a partnership
that was previously proportionally consolidated, the reclassification of certain
current asset investments as cash equivalents and the
reclassification of funds held to cover environmental rehabilitation costs from
fixed asset investments.
(3) IFRS restated information excludes the impact of IAS 32 and IAS 39.
(4) Excludes minority interests previously reported under UK GAAP as under
IFRS these are presented within equity.
Reconciliation from UK GAAP to IFRS with detailed adjustments - operating
profit for the year ended 31 December 2004
US$ million As IAS 36 De IFRS(3)
previously (1) IFRS 2 Beers
reported UK GAAP IAS 12 IAS 19 IAS 41 Other
under revised adjust-
ments
UK GAAP IAS 31 (2)
Platinum 529 - 529 (3) - 17 - (14) - (2) 527
Gold 203 59 262 (27) - 43 - - - 17 295
Coal 315 - 315 - 5 - (2) - 3 321
Base Metals 812 347 1,159 - (1) 2 - (1) - 1 1,160
Industrial Minerals 314 18 332 - 16 60 - (1) - - 407
Ferrous Metals and Industries 745 8 753 - (15) 5 4 (2) - 1 746
Paper and Packaging 551 14 565 - - 27 (24) (1) - 8 575
Exploration (120) - (120) - - - - - - - (120)
Corporate Activities (263) - (263) - (1) 20 - (3) - 2 (245)
Operating profit - subsidiaries and 3,086 446 3,532 (30) (1) 179 (20) (24) - 30 3,666
joint ventures
Platinum 8 - 8 - - - - - - 1 9
Gold - - - - - - - - - - -
Diamonds 586 - 586 - 2 35 - - (50) - 573
Coal 172 - 172 - - 3 - - - 1 176
Base Metals (121) - (121) - - - - - - - (121)
Industrial Minerals 5 - 5 - - - - - - - 5
Ferrous Metals and Industries 297 - 297 1 (5) 4 - - - (1) 296
Paper and Packaging (6) - (6) - - - - - - - (6)
Corporate Activities 7 - 7 - - - - - - - 7
Operating profit - associates 948 - 948 1 (3) 42 - - (50) 1 939
Total operating profit(4) 4,034 446 4,480 (29) (4) 221 (20) (24) (50) 31 4,605
(1) Reversal of goodwill amortisation.
(2) Other adjustments include the reclassification of certain operating costs to
interest.
(3) IFRS restated information excludes the impact of IAS 32 and IAS 39.
(4) Total operating profit is stated after exceptional items (see 4.1.7 note 3).
Reconciliation from UK GAAP to IFRS with detailed adjustments - operating profit
for the six months ended 30 June 2004
As
previously
reported UK GAAP
US$ million under revised Other
UK GAAP IAS 12 IAS 19 IAS 36 IAS 41 IFRS 2 De adjust- IFRS(3)
(1) Beers ments
(2)
Platinum 314 - 314 - - 8 - (14) - - 308
Gold 107 26 133 (1) - 21 - - - 3 156
Coal 112 - 112 - - 3 - (1) - 1 115
Base Metals 446 127 573 - 2 1 - (1) - 1 576
Industrial Minerals 136 7 143 - 7 30 - (1) - - 179
Ferrous Metals and Industries 258 2 260 - 1 4 - (1) - 2 266
Paper and Packaging 309 5 314 - (1) 15 (5) (1) - - 322
Exploration (56) - (56) - - - - - - - (56)
Corporate Activities (119) - (119) - - 10 - (1) - 2 (108)
Operating profit - subsidiaries and 1,507 167 1,674 (1) 9 92 (5) (20) - 9 1,758
joint ventures
Platinum 6 - 6 - - - - - - - 6
Gold - - - - - - - - - - -
Diamonds 350 - 350 - 2 17 - -(29) - 340
Coal 84 - 84 - - 1 - - - 1 86
Base Metals (8) - (8) - - - - - - - (8)
Industrial Minerals 2 - 2 - - - - - - - 2
Ferrous Metals and Industries 127 - 127 - - 2 - - - (1) 128
Paper and Packaging 6 - 6 - - - - - - - 6
Corporate Activities 7 - 7 - - - - - - - 7
Operating profit - associates 574 - 574 - 2 20 - -(29) - 567
Total operating profit(4) 2,081 167 2,248 (1) 11 112 (5) (20)(29) 9 2,325
(1) Reversal of goodwill amortisation.
(2) Other adjustments include the reclassification of certain operating costs to
interest.
(3) IFRS restated information excludes the impact of IAS 32 and IAS 39.
(4) Operating profit is stated after exceptional items (see 4.2.7 note 3).
Reconciliation from UK GAAP to IFRS with detailed adjustments - EBITDA for the
year ended 31 December 2004
US$ million As previously IAS 19 IAS 41 IFRS 2 Other IFRS(2)
reported under adjustments
UK GAAP (1)
Platinum 867 - - (14) - 853
Gold 701 - - - (7) 694
Diamonds 688 2 - - (35) 655
Coal 686 - - (2) 3 687
Base Metals 1,626 (1) - (1) 1 1,625
Industrial Minerals 624 16 - (1) (1) 638
Ferrous Metals and 1,249 (20) 4 (2) - 1,231
Industries
Paper and Packaging 996 - (24) (1) 7 978
Exploration (120) - - - (120)
Corporate Activities (207) (1) - (3) 1 (210)
Total EBITDA(3) 7,110 (4) (20) (24) (31) 7,031
(1) Other adjustments include the change in treatment of De Beers' US dollar
preference shares. The shares no longer qualify as quasi-equity and the return
on these shares is now reflected as interest.
(2) IFRS restated information excludes the impact of IAS 32 and IAS 39.
(3) EBITDA is defined as operating profit before exceptional items plus
depreciation and amortisation of subsidiaries and joint ventures and share of
EBITDA of associates.
Reconciliation from UK GAAP to IFRS with detailed adjustments - EBITDA for the
six months ended 30 June 2004
US$ million As IAS 19 IAS 41 IFRS 2 Other IFRS(2)
previously adjustments
reported (1)
under
UK GAAP
Platinum 479 - - (14) - 465
Gold 317 - - - 2 319
Diamonds 395 3 - - (23) 375
Coal 286 - - (1) 1 286
Base Metals 718 2 - (1) 1 720
Industrial Minerals 281 7 - (1) - 287
Ferrous Metals and Industries 562 1 - (1) 2 564
Paper and Packaging 532 (1) (5) (1) (2) 523
Exploration (56) - - - - (56)
Corporate Activities (81) (1) - (1) - (83)
Total EBITDA(3) 3,433 11 (5) (20) (19) 3,400
(1) Other adjustments include the change in treatment of De Beers' US dollar
preference shares. The shares no longer qualify as quasi-equity and the return
on these shares is now reflected as interest.
(2) IFRS restated information excludes the impact of IAS 32 and IAS 39.
(3) EBITDA is defined as operating profit before exceptional items plus
depreciation and amortisation of subsidiaries and joint ventures and share of
EBITDA of associates.
Reconciliation from UK GAAP to IFRS with detailed adjustments - headline
earnings for the year ended 31 December 2004
As
previously
reported Other
under IAS 12 IAS 19 IAS 41 IFRS 2 adjustments IFRS(2)
US$ million UK GAAP De Beers (1)
Platinum 239 17 - - (9) - (7) 240
Gold 158 (1) - - - - (18) 139
Diamonds 381 - 2 - - (112) (3) 268
Coal 351 6 - - (1) - 1 357
Base Metals 1,042 (4) (1) - (1) - - 1,036
Industrial Minerals 267 7 14 - (1) - 1 288
Ferrous Metals and Industries 480 6 (14) 3 (2) - 3 476
Paper and Packaging 381 10 - (23) (1) - - 367
Exploration (91) - - - - - - (91)
Corporate Activities (519) - (1) - (6) - 18 (508)
Total headline earnings 2,689 41 - (20) (21) (112) (5) 2,572
Reconciliation of profit attributable to equity shareholders to headline earnings
US$ million As previously IFRS
reported adjustments IFRS(2)
under
UK GAAP
Profit attributable to equity 2,913 588 3,501
shareholders
Operating exceptionals(3) 92 - 92
Non-operating exceptionals(3) (520) (505) (1,025)
Tax on exceptionals (1) 3 2
Minority interest on - 2 2
exceptionals
Amortisation of goodwill 221 (221) -
Minority interest on goodwill (16) 16 -
amortisation
Total headline earnings 2,689 (117) 2,572
(1) Other adjustments include the remeasurement of some provisions and the
recognition of a deferred tax asset in respect of dividend tax credits available
in Corporate South Africa.
(2) IFRS restated information excludes the impact of IAS 32 and IAS 39.
(3) See section 4.1.7 note 3 for analysis.
Reconciliation from UK GAAP to IFRS with detailed adjustments - headline
earnings for the six months ended 30 June 2004
As
previously
reported De Beers Other
under IAS 12 IAS 19 IAS 41 IFRS 2 adjustments
US$ million UK GAAP (1) IFRS(2)
Platinum 139 9 - - (9) - (2) 137
Gold 66 1 - - - - - 67
Diamonds 217 - 2 - - (49) (1) 169
Coal 147 2 - - (1) - - 148
Base Metals 455 (20) - - (1) - - 434
Industrial Minerals 114 3 7 - (1) - (3) 120
Ferrous Metals and Industries 207 4 1 - (1) - (3) 208
Paper and Packaging 226 3 (1) (3) (1) - (1) 223
Exploration (42) - - - - - - (42)
Corporate Activities (225) - (1) - - - 10 (216)
Total headline earnings 1,304 2 8 (3) (14) (49) - 1,248
Reconciliation of profit attributable to equity shareholders to headline earnings
US$ million As previously IFRS
reported adjustments IFRS(1)
under
UK GAAP
Profit attributable to equity 1,709 517 2,226
shareholders
Operating exceptionals(3) - - -
Non-operating exceptionals(3) (535) (472) (1,007)
Tax on exceptionals 30 2 32
Minority interest on (4) 1 (3)
exceptionals
Amortisation of goodwill 112 (112) -
Minority interest on goodwill (8) 8 -
amortisation
Total headline earnings 1,304 (56) 1,248
(1) Other adjustments include the remeasurement of some provisions and the
recognition of a deferred tax in respect of dividend tax credits available in
Corporate South Africa.
(2) IFRS restated information excludes the impact of IAS 32 and IAS 39.
(3) See section 4.2.7 note 3 for analysis.
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