Imperial Chemical Industries (ICI)

Amendment to IAS 39 Cash flow hedge accounting of forecast intra-group transactions
Amendment to IAS 39 Financial Instruments: Recognition and Measurement and IFRS 4 Insurance Contracts
Amendment to IAS 19 Employee Benefits – Actuarial Gains and Losses, Group Plans and Disclosures
Amendment to IAS 21 The Effects of Changes in Foreign Exchange Rates
IFRIC 4 Determining whether an Arrangement contains a Lease
IFRIC 5 Rights to Interests arising from Decommissioning, Restoration and Environmental Rehabilitation Funds
IFRIC 6 Liabilities arising from Participating in a Specific Market – Waste Electrical and Electronic Equipment

The standards listed above did not have a significant effect on the consolidated results or financial position of the Group, except for IFRIC 4 Determining whether an Arrangement contains a Lease. 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 £15m being recognised on the balance sheet at 1 January 2004, offset by the recognition of associated finance lease creditors of £19m, which are included within net debt. As a consequence, net assets at 1 January 2004 were restated from £(572)m to £(576)m. Net debt at 1 January 2004 has been restated from £1,326m to £1,345m. Operating profit for 2005 and 2004 has increased by £3m and £2m respectively and net finance expense for 2005 and 2004 has increased by £3m and £2m respectively. Profit before tax is unchanged in both years and therefore there is no impact on earnings per share.

The following standards or interpretations, issued by the IASB or the IFRIC, have been adopted by the European Commission, but only become effective for accounting periods beginning after 31 December 2006:

Amendment to IAS 1 Presentation of Financial Statements Capital Disclosures
IFRS 7 Financial Instruments: Disclosures
IFRIC 7 Applying the Restatement Approach under IAS 29 Financial Reporting in Hyperinflationary Economies
IFRIC 8 Scope of IFRS 2
IFRIC 9 Re-assessment of Embedded Derivatives

The Group does not currently believe the adoption of these standards or interpretations, which are not yet effective, will have a significant effect on the consolidated results or financial position of the Group.

The following standards or interpretations, issued by the IASB or the IFRIC, have not yet been adopted by the European Commission and only become effective for accounting periods beginning after 31 December 2006:

IFRS 8 Operating Segments
IFRIC 10 Interim Financial Reporting and Impairment
IFRIC 11 Group and Treasury Share Transactions

The Group is currently assessing the impact of these standards or interpretations, which are not yet effective.