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These excerpts taken from the ICI 6-K filed Mar 21, 2007. Determining whether an Arrangement contains a Lease came into effect from 1 January 2006 and provides guidance on whether
complex arrangements include a lease. As a result of this requirement, certain arrangements have required reclassification as leases. In accordance with the transitional provisions, this has resulted in additional assets of £13m being
recognised on the balance sheet at 1 January 2005, offset by the recognition of associated finance lease creditors of £17m, which are included within net debt. As a consequence, net assets at 1 January 2005 were restated from £(310)m to
£(314)m. Net debt at 1 January 2005 has been restated from £989m to £1,006m. Equity at 1 January 2005 has been restated from £(247)m to £(251)m. Operating profit for 2005 has increased slightly but has been offset by a
similar increase in the net finance expense, consequently, profit before taxation for 2005 is unchanged.
Determining whether an Arrangement contains a Lease came
into effect from 1 January 2006 and provides guidance on whether a complex arrangement
includes a lease. As a result of this requirement certain arrangements have required
reclassification as leases. This has resulted in additional assets of £15m being recognised on the balance sheet offset by the recognition
of associated finance lease creditors of £19m, which are included within net debt. As a consequence, net debt at 1 January 2004 has been restated from £1,326m to £1,345m.
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29 Analysis of net debt (continued) This excerpt taken from the ICI 6-K filed Aug 10, 2006. Determining whether an arrangement contains a lease as set out below. These policies have been consistently applied to all the years presented.
IFRIC 4 came into effect from 1 January 2006 and provides guidance on whether complex arrangements include a lease. As a result of this requirement, certain arrangements have required reclassification as leases. In accordance with the transitional provisions, this has resulted in additional assets of £13m being recognised on the balance sheet at 1 January 2005, offset by the recognition of associated finance lease creditors of £17m, which are included within net debt. As a consequence, net assets as at 1 January 2005 were restated from £(310)m to £(314)m. Net debt at 1 January 2005 has been restated from £989m to £1,006m (30 June 2005 from £1,138m to £1,156m; 31 December 2005 from £745m to £763m). Operating profit for 2005 has increased slightly but has been offset by a similar increase in the net finance expense. Consequently, profit before taxation for 2005 remains unchanged for both the half year and the full year. The revenue recognition policy for the treatment of certain co-operative allowances paid to customers has been revised to better reflect internal reporting where the allowances are now treated as a deduction from revenue rather than as a promotional expense. This revision, which only impacts the Paints business, has been included in the results for the first half of 2006 and the comparative information adjusted accordingly. As a consequence, total sales for the Group for the first half of 2005 have decreased by £12m for the half year and £25m for the full year. There is no effect on operating profit.
The Group’s continuing reporting segments comprise the International Businesses (being Paints, National Starch and Quest) and Regional and Industrial (being the Group’s Regional businesses and some ongoing residual activity relating to legacy management). Corporate and other represents the shared costs that are not directly attributable to individual segments. The Group’s discontinued reporting segment, as described on page 64 of the 2005 Annual Report and Accounts, has been revised to include Uniqema. The revenue, profit before taxation and net profit for Uniqema are disclosed in note 3. | EXCERPTS ON THIS PAGE:
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