Imperial Chemical Industries (ICI)

Notes relating to the differences between IFRS and US accounting principles:

(i) Other intangible assets
At 31 December 2005, the Group had intangible assets other than goodwill with a gross carrying amount of £270m less accumulated amortisation of £230m under US GAAP. The charge of £29m (2004 £36m) relating to other intangible assets is due to an amortisation charge of £27m (2004 £29m) and loss on disposal of a business of £2m (2004 £7m). The amortisation expense for the five succeeding years is estimated as follows: 2006 £27m, 2007 £13m, 2008 £nil, 2009 £nil and 2010 £nil.

( ii) Discounted provision
The credit of £16m (2004 £13m charge) arising on discounted provisions is due to the reversal of the discount unwind (discount rate used = 4.6%) of £4m (2004 £3m) and a release of £12m (2004 £16m increase). The undiscounted provision recognised under US GAAP at 31 December 2005 of £82m is £22m higher than the discounted provision held under IFRS (2004 £38m higher). The expected payments for the five succeeding years are estimated as follows: 2006 £5m, 2007 £5m, 2008 £4m, 2009 £5m and 2010 £6m.

36  Differences between IFRS and US accounting principles (continued)

Notes relating to the differences between IFRS and US accounting principles (continued)

(iii) Capitalisation of interest
At 31 December 2005, the Group had capitalised interest with a gross carrying amount of £100m less accumulated amortisation of £75m. The charge relating to capitalised interest of £2m (2004 £4m) is the net of additions in the period of £3m (2004 £1m) offset by an amortisation charge of £5m (2004 £5m).

Notes relating to the differences between IFRS and US accounting principles:

(i) Other intangible assets
At 31 December 2005, the Group had intangible assets other than goodwill with a gross carrying amount of £270m less accumulated amortisation of £230m under US GAAP. The charge of £29m (2004 £36m) relating to other intangible assets is due to an amortisation charge of £27m (2004 £29m) and loss on disposal of a business of £2m (2004 £7m). The amortisation expense for the five succeeding years is estimated as follows: 2006 £27m, 2007 £13m, 2008 £nil, 2009 £nil and 2010 £nil.

( ii) Discounted provision
The credit of £16m (2004 £13m charge) arising on discounted provisions is due to the reversal of the discount unwind (discount rate used = 4.6%) of £4m (2004 £3m) and a release of £12m (2004 £16m increase). The undiscounted provision recognised under US GAAP at 31 December 2005 of £82m is £22m higher than the discounted provision held under IFRS (2004 £38m higher). The expected payments for the five succeeding years are estimated as follows: 2006 £5m, 2007 £5m, 2008 £4m, 2009 £5m and 2010 £6m.

36  Differences between IFRS and US accounting principles (continued)

Notes relating to the differences between IFRS and US accounting principles (continued)

(iii) Capitalisation of interest
At 31 December 2005, the Group had capitalised interest with a gross carrying amount of £100m less accumulated amortisation of £75m. The charge relating to capitalised interest of £2m (2004 £4m) is the net of additions in the period of £3m (2004 £1m) offset by an amortisation charge of £5m (2004 £5m).