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These excerpts taken from the ICI 6-K filed Mar 21, 2007. (vi) Restructuring costs
The charge of £2m (2005 £3m credit) relating to restructuring arises from the difference in employee termination.
(vi) Restructuring costs The charge of £2m (2005 £3m credit) relating to restructuring arises from the difference in employee termination. In 2003, the Group undertook a series of restructuring programmes to improve cost effectiveness across each of its business segments. A charge of £201m was recognised under UK GAAP of which £48m related to asset write-downs. The asset write-downs related to assets to be abandoned and were recognised in connection with FRS 11 since the carrying value of the assets exceeded the recoverable amount. In making the assessment of recoverable amount under UK GAAP decisions were made on an individual asset basis. Under US GAAP, as the assets formed part of larger, profitable cash generating units, no impairment was recognised. However, the remaining lives of the assets were adjusted and the charge of £47m in the 2004 UK GAAP and IFRS to US GAAP reconciliations represented the “catch up” accelerated depreciation under US GAAP. Under the exemptions provided in IFRS 1 paragraphs 16 and 17, the fixed asset values were included at the date of transition to IFRS at the impaired UK GAAP value resulting in the GAAP difference in the 2004 IFRS to US GAAP income statement reconciliation.
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