Imperial Chemical Industries (ICI)

Share-based payments
The Group has applied the requirements of IFRS 2 Share-based payments. The Group has not adopted the exemption to apply IFRS 2 only to awards made after 7 November 2002; instead a full retrospective approach has been followed.

The Group issues predominantly equity-settled payments to certain employees (see pages 89 and 90 of the 2004 Annual Report and Accounts). Equity settled share-based payments are measured at fair value at the date of grant. The fair value determined at the grant date of the equity-settled, share-based payments is expensed on a straight line basis over the vesting period, based on the Group’s estimate of shares that will eventually vest. Fair value is measured by use of the Black-Scholes option pricing model.

Non-current assets and disposal groups held for sale
Non-current assets and disposal groups classified as held for sale are measured at the lower of carrying amount and fair value less costs to sell. Non-current assets and disposal groups are classified as held for sale if their carrying amount will be recovered through a sale transaction rather than through continuing use. This condition is regarded as met only when the sale is highly probable and the asset (or disposal group) is available for immediate sale in its present condition. Management must be committed to the sale, which should be expected to qualify for recognition as a completed sale within one year from the date of classification.