Imperial Chemical Industries (ICI)

g) Business combinations

i) Profit (loss) on disposal
Under UK GAAP, goodwill that was previously held in reserves was recycled and included within the profit (loss) on disposal calculation. Under IFRS, any goodwill held in reserves is not recycled on disposal.

Also, on disposal of an operation under IFRS, ICI will transfer the cumulative amount of exchange differences recognised in equity since the transition date to the income statement as part of the profit and loss on disposal. Under UK GAAP these cumulative exchange differences remained in reserves.

ii) Post-retirement benefits
Under IFRS, a post-retirement benefit liability was recognised in relation to Quest Food Ingredients on transition. This liability was included in the disposal of Quest Food Ingredients during the year.

iii) Taxation
IFRS applies different criteria for the recognition of deferred tax in relation to internal restructuring.

ii) Post-retirement benefits
Under IFRS, a post-retirement benefit liability was recognised in relation to Quest Food Ingredients on transition. This liability was included in the disposal of Quest Food Ingredients during the year.

iii) Taxation
IFRS applies different criteria for the recognition of deferred tax in relation to internal restructuring.

e) Other
This represents other differences between UK GAAP and IFRS principally relating to the treatment of foreign exchange, the accounting for joint ventures, the accounting for share-based payments and other minor reclassifications.

g) Business combinations

i) Profit (loss) on disposal
Under UK GAAP, goodwill that was previously held in reserves was recycled and included within the profit (loss) on disposal calculation. Under IFRS, any goodwill held in reserves is not recycled on disposal.

Also, on disposal of an operation under IFRS, ICI will transfer the cumulative amount of exchange differences recognised in equity since the transition date to the income statement as part of the profit and loss on disposal. Under UK GAAP these cumulative exchange differences remained in reserves.

ii) Post-retirement benefits
Under IFRS, a post-retirement benefit liability was recognised in relation to Quest Food Ingredients on transition. This liability was included in the disposal of Quest Food Ingredients during the year.

iii) Taxation
IFRS applies different criteria for the recognition of deferred tax in relation to internal restructuring.