This excerpt taken from the ICI 20-F filed Apr 1, 2005.
Review of 2004 business results
Basis of presentation
The tables on pages 18, 19, 22 and 23 of this Annual Report on Form 20-F provide reconciliations between the UK GAAP performance measures of movements in “turnover” and “operating profit before exceptional items” and the non-UK GAAP performance measures that ICI uses of movements in “constant currency turnover” and “constant currency trading profit”. The tables detail the amounts excluded from the most directly comparable UK GAAP financial measure. “Reported” relates to the figures included in the financial statements prepared under UK GAAP. “Constant currency ” excludes the effect of currency translation differences and is a non-UK GAAP financial measure. ICI management use the “constant currency ” financial measure for purposes of making decisions about allocating resources across the business and assessing its underlying performance. A more detailed description of “constant currency” performance, how it is calculated, why it is considered useful for investors and the limitations of non-UK GAAP financial measures are set out on pages 12 to 14 of this Annual Report on Form 20-F.