Restatement of financial information to International Financial
Reporting Standards (IFRS)
Contents
1
Introduction
2
Independent auditors' report
3
Accounting policies
4
Areas of impact
5
Reconciliation of UK GAAP and IFRS
1
1
Introduction
With effect from 2 May 2005, Greene King plc has moved to reporting its financial results in accordance
with International Financial Reporting Standards (IFRS) as required by European Union Law.
Accordingly the group's first annual report under IFRS will be for the 52 weeks ended 30 April 2006. The
first IFRS results will be for the 24 weeks to 16 October 2005.
This document explains how the group's reported UK GAAP financial performance for the 52 weeks
ended 1 May 2005, and 24 weeks ended 17 October 2004, and its financial position at those dates and
the date of transition, would have been reported under IFRS. The following reconciliations are included:
5.1
5.2
5.3
5.4
5.5
Consolidated balance sheet at 3 May 2004, the date of transition (the "opening balance
sheet")
Consolidated balance sheet at 1 May 2005
Consolidated income statement for the 52 weeks ended 1 May 2005
Consolidated interim balance sheet at 17 October 2004
Consolidated interim income statement for the 24 weeks ended 17 October 2004
These preliminary IFRS financial statements will form the basis of the comparative information in the
first IFRS accounts and have been prepared on management expectation of the policies to be applied at
the year end. The accounting policies applied in preparing the preliminary IFRS financial statements are
set out on pages 4 to 7, and the major changes that have resulted are described on pages 8 to 9.
The preliminary IFRS financial statements for the year ended 1 May 2005 have been audited by Ernst &
Young LLP. The interim preliminary IFRS financial information to 17 October 2004 has been reviewed
by Ernst & Young LLP.
For the 52 weeks to 1 May 2005 profit before tax and exceptional items has increased by £1.7m and net
assets have reduced by £31.8m. This represents an increase of profits of 1.8% and a reduction in net
assets of 4.7%. The corresponding figures for the 24 weeks to 17 October 2004 are £0.9m and £42.7m
respectively.
Summary of impact
Share based payment
Pension accounting
Income tax and deferred tax
Goodwill
Dividends
Other
Total
52 weeks to 01.05.05
Profit
Net
before tax
assets
and
exceptionals
£m
£m
(0.5)
2.4
(0.2)
1.7
1.7
(50.2)
(100.1)
100.7
18.8
(2.7)
(31.8)
24 weeks to 17.10.04
Profit
Net
before tax
assets
and
exceptionals
£m
£m
(0.3)
1.2
0.9
1.6
(42.4)
(99.4)
92.6
7.4
(2.5)
(42.7)
The introduction of IFRS removes the requirement under UK GAAP (FRS 3) of separate classification of
exceptional items. Exceptional items will now be reported in operating profit but will continue to be
highlighted to ensure readers of the accounts have a full understanding of the underlying performance.
2
2
Independent auditors’ report to the Company on the preliminary IFRS
financial statements for the 52 weeks ended 1 May 2005
We have audited the accompanying preliminary International Financial Reporting Standards (“IFRS”)
financial statements of the company for the 52 weeks ended 1 May 2005 which comprise the opening
IFRS Balance Sheet as at 3 May 2004, the Income Statement and the Statement of Recognised Income
and Expenditure for the 52 weeks ended 1 May 2005 and the Balance Sheet as at 1 May 2005, together
with the related accounting policies note set out on pages 4 to 7.
This report is made solely to the directors in accordance with our engagement letter dated 2 November
2005. Our audit work has been undertaken so that we might state to the directors those matters we are
required to state to them in an auditors’ report and for no other purpose. To the fullest extent permitted
by law, we do not accept or assume responsibility or liability to anyone other than the company for our
audit work, for this report, or for the opinions we have formed.
Respective responsibilities of directors and auditors
These preliminary IFRS financial statements are the responsibility of the Company’s directors and have
been prepared as part of the Company’s conversion to IFRS. They have been prepared in accordance
with the basis set out on page 4, which describes how IFRS have been applied under IFRS 1, including
the assumptions management has made about the standards and interpretations expected to be
effective, and the policies expected to be adopted, when management prepares its first complete set of
IFRS financial statements as at 30 April 2006.
Our responsibility is to express an independent opinion on the preliminary IFRS financial statements
based on our audit. We read the other information accompanying the preliminary IFRS financial
statements and consider whether it is consistent with the preliminary IFRS financial statements. This
other information comprises the explanatory notes on the impact of IFRS on pages 8 to 9, and the
reconciliation from UK GAAP to IFRS in section 5. We consider the implications for our report if we
become aware of any apparent misstatements or material inconsistencies with the preliminary IFRS
financial statements. Our responsibilities do not extend to any other information.
Basis of audit opinion
We conducted our audit in accordance with United Kingdom Auditing Standards issued by the Auditing
Practices Board. Those Standards require that we plan and perform the audit to obtain reasonable
assurance about whether the preliminary IFRS financial statements are free of material misstatement.
An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the
preliminary IFRS financial statements. An audit also includes assessing the accounting principles used
and significant estimates made by management, as well as evaluating the overall presentation of the
preliminary IFRS financial statements. We believe that our audit provides a reasonable basis for our
opinion.
Emphasis of matter
Without qualifying our opinion, we draw attention to the fact that the basis of preparation on page 4
explains why there is a possibility that the preliminary IFRS financial statements may require adjustment
before constituting the final IFRS financial statements. Moreover, we draw attention to the fact that,
under IFRSs only a complete set of financial statements with comparative financial information and
explanatory notes can provide a fair presentation of the Company’s financial position, results of
operations and cash flows in accordance with IFRSs.
Opinion
In our opinion, the preliminary IFRS financial statements for the 52 weeks ended 1 May 2005 have been
prepared, in all material respects, in accordance with the basis set out on page 4 which describes how
IFRS have been applied under IFRS 1, including the assumptions management has made about the
standards and interpretations expected to be effective, and the policies expected to be adopted, when
management prepares its first complete set of IFRS financial statements as at 30 April 2006.
Ernst & Young LLP
5 December 2005
Cambridge
3
3
Accounting policies under IFRS
Basis of preparation
The financial information presented in this document has been prepared in accordance with IFRS, on
the basis of the standards expected to be in issue at 30 April 2006. This includes the assumption that
the amendment to IAS 19 will be endorsed by the European Commission.
In the transition to IFRS the 2005 figures (Greene King's 2004/05 financial year) have not been adjusted
for the implementation of IFRS 5, IAS 32 and IAS 39 as permitted by the transition arrangements in
IFRS 1. Instead, IAS 32 and IAS 39 have been adopted with effect from 1 May 2005 and IFRS 5 will be
adopted for the year ended 30 April 2006.
The preliminary IFRS statements have been prepared under the historic cost convention, except for
certain items of property, plant and equipment held at deemed cost under the transitional rules of IFRS,
and derivative financial instruments measured at fair value.
IFRS 1 First time adoption choices
IFRS has been adopted from 3 May 2004 (“the date of transition”) with the exception of IFRS 5, IAS 32
and IAS 39. In line with IFRS 1, “First-time Adoption of International Financial Reporting Standards”, and
UK listing rules, the group is required to comply with each IFRS expected to be effective at the reporting
date for its first IFRS financial statements, with full retrospective application.
However, IFRS 1 grants limited transitional provisions in specified areas. Set out below is a description
of the significant first time adoption choices made by the group:
Business combinations
The group has elected not to apply IFRS 3 retrospectively to business combinations that took place
before the date of transition. As a result, goodwill arising from past business combinations remains as
stated under UK GAAP at 3 May 2004.
Employee benefits
In accordance with the amendment to IAS 19, issued on 16 December 2004, the group has elected to
recognise all cumulative actuarial gains and losses in relation to employee benefit schemes in full in the
period in which they occur in the statement of recognised income and expense.
Valuation of properties
The group has elected to treat the revalued amount of properties at 3 May 2004 as deemed cost as at
that date.
Share-based payments
The group has elected to apply IFRS 2 only to share based payment transactions granted after 7
November 2002 that had not vested on or before 1 January 2005.
Financial instruments
The group has taken the option to defer the implementation of IAS 32 and IAS 39 to the financial year
commencing 2nd May 2005. Accordingly, no adjustments for financial instruments will be required in the
2004/05 income statement or the 2005 balance sheet as these will continue to be accounted for under
UK GAAP.
It is the group’s intention to apply hedge accounting where the requirements of IAS 39 are met.
Property, plant and equipment
The group has adopted the transitional provisions of IFRS 1 to use previous revaluations as deemed
cost at the transition date. From 3 May 2004, all property, plant and equipment will be accounted for
under the cost method.
Impairment
At each balance sheet date, the carrying values of property, plant and equipment are reviewed for
indicators of impairment for each cash generating unit (the smallest group of assets where independent
cash flows are produced). Where the carrying value of assets may not be recoverable an impairment in
the value of fixed assets is charged to the income statement.
Depreciation
Depreciation is calculated on a straight-line basis over the estimated useful life of the asset.
4
Freehold land is not depreciated. Freehold buildings are depreciated to their estimated residual values
over periods up to fifty years, long leasehold properties are depreciated to their estimated residual
values over periods up to fifty years, short leasehold properties are depreciated to their estimated
residual values over the remaining term of the lease. Furniture, fixtures and equipment assets are
depreciated over their estimated lives which range from three to twenty years.
Borrowing costs
Borrowing costs, which include the amortisation of associated initial fees, are recognised as an expense
when incurred.
Goodwill
Goodwill arising from the premium paid on businesses acquired after 3 May 1998 is recognised as an
asset and tested annually for impairment, or more frequently if events or changes in circumstances
indicate that the carrying value may be impaired. As such, goodwill is stated at cost less any provision
for impairment in value. Any new or existing goodwill is not amortised after 3 May 2004. Previous to 3
May 1998, goodwill was written off to reserves and has not been re-instated.
Inventories
Inventories are valued at the lower of cost and net realisable value and where applicable include an
element of production overheads.
Non-current assets held for sale
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. The asset must be available
for immediate sale and the sale must be highly probable. Once classified as held for sale they are
measured at the lower of fair value less costs to sell and carrying value.
Cash and cash equivalents
Cash and cash equivalents in the balance sheet comprise cash at bank and in hand and short-term
deposits with an original maturity of three months or less.
For the consolidated cash flow statement, cash and cash equivalents consist of cash and cash
equivalents as defined above, net of outstanding bank overdrafts.
Financial instruments
The group has adopted both IAS 32 and IAS 39 from 2 May 2005. Under the transitional rules of IFRS 1,
IAS 32 and IAS 39 are not applied to comparative balances. The 2005 comparative balances will be
presented in accordance with UK GAAP.
Other financial assets
Trade loans are initially recognised at cost, being the fair value of the consideration received. After initial
recognition, trade loans, which are classified as held for trading, are measured at fair value, being cost
less deemed impairment. Gains or losses are recognised in the income statement for the period.
Interest income is recognised in profit or loss as the interest accrues.
Trade receivables
Trade receivables are recorded at their original amount less an allowance for any doubtful accounts
when collection of the full amount is no longer considered probable.
Trade payables
Under IAS 39 and UK GAAP, trade payables are non-interest bearing and are stated at their nominal
value.
Interest-bearing loans and borrowings
All loans and borrowings are initially recognised at cost, being the fair value of the consideration
received, net of issue costs. After initial recognition, interest-bearing loans and borrowings are
measured at amortised cost with any difference between cost and redemption value being recognised in
profit and loss on an effective interest basis. Borrowing costs not settled in the period are included within
the outstanding loan balance.
The group derecognises a financial instrument when the contractual rights, or the cashflow attributable
to the instrument are passed to a third party.
Derivative financial instruments and hedging
Interest rate swaps are used to hedge the group’s risk of interest rate fluctuations.
Interest rate swaps are initially measured at cost, if any. Subsequent measurement is at fair value
determined by reference to market values for similar instruments. The gain or loss on remeasurement to
5
fair value is recognised either immediately in the income statement or directly within equity, depending
on the fulfilment of hedging criteria.
For hedge accounting, hedges can be classified as either fair value (hedging exposure to changes in fair
value of an asset or liability), or cash flow (hedging the variability in cash flows attributable with an asset,
liability, or forecast transaction).
In relation to cash flow hedges, the gain or loss on the hedging instrument that is determined to be an
effective hedge is recognised directly in equity and the ineffective portion is recognised in net profit or
loss.
If the hedged item or transaction results in the recognition of an asset or liability, at the time the asset or
liability is recognised, the associated gains or losses previously recognised in equity are included in the
initial acquisition cost or carrying amount of the asset or liability. For all other cash flow hedges, the
gains and losses recognised directly in equity are transferred to the income statement in the same
period during which the interest expense on debt is recognised.
For derivatives that do not qualify for hedge accounting, any gains or losses arising from changes in fair
value are taken directly to net profit or loss for the year
When a hedging instrument expires or is sold, terminated or exercised, or no longer qualifies for hedge
accounting, the hedge accounting is discontinued and the cumulative gains or losses recognised in
equity are held there until the previously hedged transaction occurs. If the hedged transaction is no
longer expected to take place, the cumulative gain or loss is recognised immediately in the income
statement.
Consolidation
The results of subsidiaries are consolidated, using the purchase method of accounting, from the date on
which control of the net assets and operations of the acquired company are effectively transferred to the
group. Intercompany transactions, balances and unrealised gains on transactions between group
companies are eliminated.
Pensions
The group operates both defined benefit and defined contribution pension schemes, the assets of which
are held separately from the group's finances. The net obligation in respect of defined benefit pension
schemes is calculated separately for each scheme. The excess or shortfall of scheme assets, measured
at fair value, over scheme liabilities, measured using the projected unit credit method, is recognised in
the balance sheet.
Current and past service costs are recognised in the income statement.
All actuarial gains and losses as at 3 May 2004 were recognised on transition to IFRS. Subsequent to
this date, actuarial gains and losses are recognised immediately in reserves and reported in the
statement of recognised income and expense.
The cost of providing defined contribution pensions amounts to the value of contributions made.
Payments are charged to the income statement as they fall due.
Share based payments
Certain employees and directors receive equity-settled remuneration, whereby they render services in
exchange for shares or rights over shares. The fair value of the options granted is measured using a
Black-Scholes model, at the date at which they were granted. The fair value of shares and options
granted are recognised as an employee expense with a corresponding increase in equity spread over
the period in which the performance conditions are fulfilled ending on the relevant vesting date. The
cumulative amount recognised as an expense reflects the extent to which the vesting period has
expired, adjusted for the estimated number of shares and options that are ultimately expected to vest.
The periodic charge or credit is the movement in the cumulative position from beginning to end of that
period.
No expense is recognised for awards that do not ultimately vest providing vesting is not conditional on
market related conditions.
The dilutive effect of outstanding options is reflected as additional share dilution in calculating earnings
per share figures.
The group has an employee share incentive plan and an employee benefit trust for the granting of
shares to applicable employees. The shares held by the employee benefit trust are treated as treasury
shares and presented as a deduction from equity.
6
In accordance with the transitional provisions of IFRS 2, no expense is recorded in respect of grants
made under the above schemes prior to 7 November 2002.
Revenue
Generally, revenue represents sales (excluding VAT and other similar taxes) of goods and services, net
of discounts.
Turnover represents amounts derived from:
i) drink and food sales - recognised at the point at which the goods are provided
ii) property rental income – recognised on a straight line basis over the lease term on ongoing leases;
iii) accommodation - recognised at the point at which services are rendered
iv) machine income – net takings recognised as earned or received
Operating leases
Rental payments in respect of operating leases are charged against trading profit on a straight line basis
over the period of the lease.
Payments made on entering into or acquiring leasehold land or buildings that are accounted for as an
operating lease represent prepaid lease payments. These are amortised over the lease term.
Income tax
The income tax charge comprises both the income tax payable based on profits for the year and the
deferred income tax. It is calculated using taxation rates enacted or substantially enacted by the balance
sheet date.
Deferred tax is provided using the balance sheet liability method in respect of temporary differences
between the carrying value of assets and liabilities in the financial statements and the corresponding tax
bases used in the computation of taxable profit.
Deferred tax assets are recognised to the extent that it is probable that future taxable income will be
available to utilise those temporary differences recognised as deferred tax assets against such income.
Deferred tax is calculated at the tax rates that are expected to apply to the period when the asset is
realised or the liability is settled. Deferred tax is charged or credited to the income statement except
where is relates to items credited or charged directly to equity in which case the deferred tax is also
dealt with in equity.
7
4
Areas of impact
The most significant areas of impact for Greene King arising from the transition to IFRS are discussed
below.
1
IAS 17 - Leases
Under UK GAAP fair values attached to leasehold interests acquired as part of an acquisition were held
within fixed assets and depreciated over the life of the lease.
Under IFRS, these amounts represent a prepayment of rent and are held as current assets and
amortised over the term of the lease.
A reclassification of £4.0m is required between non-current and current assets at 3 May 2004, and
£9.2m at 1 May 2005. There is no impact on net income although £0.8m of depreciation is reclassified
as rent in the year ended 1 May 2005.
2a)
IAS 19 - Employee Benefits - post-employment pension benefits
Under UK GAAP (SSAP24 “Accounting for Pension Costs”) pension costs are charged to the profit and
loss account over the average expected service life of current employees. Actuarial surpluses and
deficits are amortised over the expected remaining service lives of current employees. Any differences
between the amount charged to the profit and loss and payments made to the schemes are treated as
assets and liabilities in the balance sheet.
IAS 19 requires recognition of the operating and finance costs of defined benefit plans in the income
statement, with the option to recognise actuarial gains and losses through equity in the statement of
recognised income and expense. This approach has been adopted in the group's accounting policies.
At 3 May 2004, there was no SSAP 24 asset or liability recorded in the balance sheet. The schemes'
deficits at that date, as determined in accordance with IAS 19, were £43.6m. This has been recognised
in non-current liabilities with the related deferred tax asset of £13.1m being netted off against deferred
tax liabilities in the balance sheet.
The effect on the balance sheet at 1 May 2005 is recognition of a liability of £50.2m, an increase of
£6.6m from the 2004 liability. £9.0m of actuarial losses has been recognised directly in equity.
The effect of adopting IAS 19 on the income statement is an increase in profit before tax of £2.4m, made
up of £3.1m reversal of SSAP 24 past service costs and £0.7m interest charge. There is a related
increase to the tax charge of £0.8m for the financial year ended 1 May 2005.
2b)
IAS 19 - Employee Benefits - other post-employment benefits
Under UK GAAP (FRS 12 “Provisions and contingent liabilities”), liabilities for other post employment
benefits are provided when there is a future liability for a past event that is reliably measurable.
Under IFRS, all post-employment benefits are captured by IAS 19. The cost of any past service should
be measured and discounted using bond yields.
The effect of the change in measurement basis is an increase in provision of £2.0m and decrease in
deferred tax provision of £1.5m.
2c)
IAS 19 - Employee benefits - short term benefits
IAS 19 specifically requires any difference between amounts due to employees and amounts recognised
through the income statement in relation to short-term employee benefits to be recognised on the
balance sheet. There is no equivalent standard under UK GAAP.
At 3 May 2004, a liability of £0.5m relating to holiday due but not taken has been recognised. At 1 May
2005, the liability has been measured at £0.7m, the impact on the income statement being £0.2m.
3)
IFRS 2 - Share based payments
Under UK GAAP, the group was required to recognise the cost of options under specific schemes,
based on the intrinsic value of the option at the date of grant, spread over the vesting period, or
performance period, where performance criteria must be satisfied, with a corresponding increase in
equity.
8
Under IFRS, the fair value of employee services received is measured by reference to the fair value of
the equity instrument at the grant date, with the charge spread over the vesting period for all grants.
Also exemption for SAYE schemes is no longer available.
On transition, a net debit of £0.2m is recognised in equity being an IFRS 2 charge of £0.5m less £0.3m
previously booked under UK GAAP. The associated reduction to the deferred tax provision is £0.2m. An
additional deferred tax charge of £1.2m has been included in relation to pre-November 2002 options
which had not vested before 1 January 2005
For the year ended 1 May 2005, a net debit of £0.5m is recognised, being an IFRS 2 charge of £1.2m
less £0.7m previously booked under UK GAAP. The associated deferred tax in the income statement is
a credit of £0.2m. An additional deferred tax asset of £0.3m in relation to pre-November 2002 options
which had not vested before 1 January 2005 has been recognised directly in equity.
4)
IAS 12 - Income taxes
In addition to the adjustments to deferred tax noted in connection with the other areas of impact, further
adjustments relating to the implementation of IAS 12 are outlined below:
Under UK GAAP deferred tax was provided on roll-over relief claims only to the extent that the liability
was expected to crystallise. Under IFRS, a provision is required for all such claims, net of capital losses,
creating a deferred tax liability of £6.1m as at 3 May 2004, and £9.3m at 1 May 2005.
Under UK GAAP, the creation of a deferred tax liability for revaluation gains was not permitted, under
IFRS it is required. The last valuation was performed in 2003/04. The revalued carrying amounts at 3
May 2004 will form the deemed costs under IFRS. A transitional deferred tax liability is required
amounting to £18.9m at 3 May 2004, and £107.3m at 1 May 2005.
5)
IAS 10 - Events after balance sheet date
Under UK GAAP, interim and final proposed dividends have been recorded in the financial year to which
they related and are recognised as a liability at the relevant balance sheet date.
Under IFRS, dividends declared after the balance sheet date should not be recognised as a liability.
The reversal of the proposed dividend liability increases equity by £16.9m at 3 May 2004, and £18.8m at
1 May 2005. The net effect on the income statement is an increase in profit of £1.9m.
6)
IAS 18 - Revenue
Under UK GAAP, revenue is stated at gross sales value less VAT and discounts.
Under IFRS, the definition is tightened to exclude all taxes collected on behalf of third parties.
For the year ended 1 May 2005, revenue has been reduced by £25.1m in relation to duty payable on the
sale of own-brewed products to external customers. This has been reclassified within the income
statement and therefore has no impact on trading profit.
7)
IFRS 3 - Business combinations
Under UK GAAP, goodwill was amortised on a straight-line basis over its estimated useful life of 20
years.
Under IFRS, positive goodwill must not be amortised, but must be held at cost less impairment losses,
and tested for impairment annually, or more frequently if circumstances indicate an impairment may
have occurred. Negative goodwill is recognised in the income statement immediately.
The carrying value of goodwill at 3 May 2004 was £113.1m. Amortisation prior to this is not reversed
and therefore there is no impact on equity at 3 May 2004. For the year ended 1 May 2005, the removal
of the amortisation charge increases profits before tax and the goodwill asset by £13.1m. There is no
associated tax impact.
9
Greene King plc
5.1 Opening Balance Sheet Reconciliation - 03 May 2004
UK GAAP
At 03/05/04
£m
Adjustments
1
IAS 17
Lease premium
prepayment
Assets
Non-current assets
Property, plant, and equipment
Goodwill
Other intangible asset
Investments in associates
Trading profit
1,073.5
113.1
18.1
-
(4.0)
Total non-current assets
1,204.7
(4.0)
2a
IAS 19
Pension
-
2b
IAS 19
Post-employment
benefit
-
2c
IAS 19
Short-term
Benefit
-
3
IFRS 2
Share based
payments
-
4
IAS 12
Deferred
tax
-
5
IAS 10
Declared
Dividend
-
6
IAS 18
Revenue
Beer duty
-
7
8
IFRS 3
Businsess
Other
Combinations adjustments
-
IFRS
At 03/05/04
£m
(15.1)
15.1
1,069.5
113.1
3.0
15.1
-
1,200.7
Current assets
Inventories
Trade and other receivables
Prepayments
Other financial assets
Cash and cash equivalents
11.6
26.4
4.6
7.5
4.0
Total current assets
50.1
4.0
-
-
-
-
-
-
-
-
-
54.1
-
-
-
-
-
-
-
-
-
-
1,254.8
Total assets
1,254.8
Liabilities
Non-current liabilities
Interest bearing borrowings
Deferred tax
Other post-employment benefit
Pension obligation
(447.5)
(37.8)
(3.1)
-
Total non-current liabilities
(488.4)
Current liabilities
Trade and other payables
Short-term borrowings
Current portion of interest bearing borrowings
Income taxes payable
11.6
26.4
8.6
7.5
13.1
1.5
(2.0)
1.4
(25.0)
1.4
(25.0)
(447.5)
(46.8)
(5.1)
(43.6)
(43.6)
-
(30.5)
(0.5)
(91.5)
(4.5)
(2.1)
(14.2)
-
-
(0.5)
(0.1)
(0.5)
(0.1)
-
-
-
-
16.9
-
16.9
(543.0)
(75.2)
(4.5)
(2.1)
(14.2)
Total current liabilities
(112.3)
Total liabilities
(600.7)
-
(30.5)
(0.5)
(0.5)
1.3
(25.0)
16.9
-
654.1
-
(30.5)
(0.5)
(0.5)
1.3
(25.0)
16.9
-
Net assets
-
-
-
-
-
(96.0)
-
-
(639.0)
-
-
615.8
Equity
Called-up share capital
Share premium
Revaluation reserve
Other reserves
Own shares
Accumulated profit
Total Equity
(18.0)
(189.2)
(282.8)
(1.0)
8.5
(171.6)
(654.1)
282.8
(282.8)
-
30.5
30.5
0.5
0.5
0.5
0.5
(1.3)
(1.3)
25.0
25.0
(16.9)
(16.9)
-
-
-
(18.0)
(189.2)
(283.8)
8.5
(133.3)
(615.8)
Greene King plc
5.2 Balance Sheet Reconciliation - 01 May 2005
UK GAAP
At 01/05/05
£m
Adjustments
1
IAS 17
Lease premium
prepayment
Assets
Non-current assets
Property, plant, and equipment
Goodwill
Other intangible asset
Investments in associates
Trading profit
1,581.5
259.3
15.2
-
(9.2)
Total non-current assets
1,856.0
(9.2)
2a
IAS 19
2b
IAS 19
Post-employment
benefit
Pension
2c
IAS 19
Short-term
Benefit
3
IFRS 2
Share based
payments
4
IAS 12
Deferred
tax
5
IAS 10
Dividend
6
IAS 18
Revenue
Beer duty
87.6
-
-
-
-
87.6
7
IFRS 3
Businsess
Combinations
-
-
13.1
14.2
28.2
2.8
34.4
9.2
Total current assets
79.6
9.2
-
-
-
-
-
-
-
-
-
-
-
-
-
87.6
-
-
13.1
1,935.6
Liabilities
Non-current liabilities
Interest bearing borrowings
Deferred tax
Other post-employment benefit
Pension obligation
(1,028.6)
(39.8)
(3.1)
(6.0)
Total non-current liabilities
(1,077.5)
Current liabilities
Trade and other payables
Short-term borrowings
Current portion of interest bearing borrowings
Income taxes payable
(129.9)
(10.8)
(15.2)
(18.5)
Total current liabilities
(174.4)
Total liabilities
Net assets
(1,251.9)
683.7
Other
adjustments
(15.2)
15.2
-
1,947.5
14.2
28.2
12.0
34.4
15.0
1.5
(2.0)
1.9
(116.6)
1.9
(116.6)
88.8
-
-
(35.2)
-
(0.5)
-
-
(0.7)
(0.2)
(0.7)
(0.2)
-
2,036.3
(1,028.6)
(138.0)
(5.1)
(56.2)
(50.2)
-
IFRS
At 01/05/05
£m
1,572.3
360.0
15.2
13.1
Current assets
Inventories
Trade and other receivables
Prepayments
Other financial assets
Cash and cash equivalents
Total assets
8
-
-
-
-
18.8
18.8
(1,227.9)
(112.0)
(10.8)
(15.2)
(18.5)
-
-
-
(156.5)
(1,384.4)
-
(35.2)
(0.5)
(0.7)
1.7
(116.6)
18.8
-
-
-
-
(35.2)
(0.5)
(0.7)
1.7
(29.0)
18.8
-
13.1
-
651.9
Equity
Called-up share capital
Share premium
Revaluation reserve
Other reserves
Own shares
Accumulated profit
Profit for period
Total Equity
(18.1)
(192.2)
(278.2)
(1.0)
10.7
(177.0)
(27.9)
(683.7)
278.2
(278.2)
-
36.8
(1.6)
35.2
0.5
0.5
0.5
0.2
0.7
(2.0)
0.3
(1.7)
25.0
4.0
29.0
(16.9)
(1.9)
(18.8)
-
(13.1)
(13.1)
24.3
(24.3)
-
(18.1)
(192.2)
(279.2)
10.7
(108.8)
(64.3)
(651.9)
Greene King plc
5.3 Income Statement Reconciliation - 01 May 2005
Adjustments
1
UK GAAP
IAS 17
At 01/05/05 Lease premium
£m
prepayment
Revenue
Operating expenses
2a
IAS 19
Pension
2b
IAS 19
Post-employment
benefit
2c
IAS 19
Short-term
Benefit
3
IFRS 2
Share based
payments
Dividend
3.1
0.2
(0.2)
(0.5)
Trading profit
148.7
-
3.1
0.2
(0.2)
(0.5)
Net Finance costs
(75.9)
(0.7)
(0.2)
Profit Before Tax
72.8
-
(18.7)
(26.2)
27.9
6
IAS 18
Revenue
Beer duty
7
IFRS 3
Businsess
Combinations
8
Other
adjustments
(25.1)
-
Profit/(loss) for the period
5
IAS 10
732.6
(583.9)
Tax
Dividends
4
IAS 12
Deferred
tax
2.4
-
(0.8)
-
-
-
707.5
25.1
13.1
(543.1)
-
13.1
164.4
(76.8)
(0.2)
(0.5)
0.2
-
-
-
13.1
1.6
-
(0.2)
(0.3)
87.6
(4.0)
1.9
-
IFRS
At 01/05/05
£m
(4.0)
1.9
-
13.1
24.3
(23.3)
-
24.3
64.3
Greene King plc
5.4 Interim Balance Sheet Reconciliation - 17 October 2004
UK GAAP
At 17/10/04
£m
Adjustments
1
IAS 17
Lease premium
prepayment
Assets
Non-current assets
Property, plant, and equipment
Goodwill
Other intangible asset
Investments in associates
Trading profit
1,601.9
269.3
15.4
-
(9.7)
Total non-current assets
1,886.6
(9.7)
2a
IAS 19
2b
IAS 19
Post-employment
benefit
Pension
2c
IAS 19
Short-term
Benefit
3
IFRS 2
Share based
payments
4
IAS 12
Deferred
tax
5
IAS 10
Dividend
6
IAS 18
Revenue
Beer duty
87.6
-
-
-
-
87.6
7
IFRS 3
Businsess
Combinations
-
-
5.0
14.5
33.3
13.8
9.7
Total current assets
61.6
9.7
-
-
-
-
-
-
-
-
-
-
-
-
-
87.6
-
-
5.0
1,948.2
Liabilities
Non-current liabilities
Interest bearing borrowings
Deferred tax
Other post-employment benefit
Pension obligation
(1,083.0)
(37.0)
(3.1)
-
Total non-current liabilities
(1,123.1)
Current liabilities
Trade and other payables
Short-term borrowings
Current portion of interest bearing borrowings
Income taxes payable
(123.0)
(5.0)
(18.9)
Total current liabilities
(146.9)
Total liabilities
Net assets
(1,270.0)
678.2
Other
adjustments
(15.4)
15.4
-
1,969.5
14.5
33.3
9.7
13.8
12.7
1.5
(2.0)
1.8
(113.6)
1.8
(113.6)
71.3
-
-
(29.7)
-
(0.5)
-
-
(0.5)
(0.2)
(0.5)
(0.2)
-
2,040.8
(1,083.0)
(134.6)
(5.1)
(42.4)
(42.4)
-
IFRS
At 17/10/04
£m
1,592.2
361.9
15.4
5.0
Current assets
Inventories
Trade and other receivables
Prepayments
Other financial assets
Cash and cash equivalents
Total assets
8
-
-
-
-
7.4
7.4
(1,265.1)
(116.3)
(5.0)
(18.9)
-
-
-
(140.2)
(1,405.3)
-
(29.7)
(0.5)
(0.5)
1.6
(113.6)
7.4
-
-
-
-
(29.7)
(0.5)
(0.5)
1.6
(26.0)
7.4
-
5.0
-
635.5
Equity
Called-up share capital
Share premium
Revaluation reserve
Other reserves
Own shares
Accumulated profit
Profit for period
Total Equity
(18.1)
(191.0)
(282.7)
(1.0)
8.5
(171.9)
(22.0)
(678.2)
282.7
(282.7)
-
30.5
(0.8)
29.7
0.5
0.5
0.5
0.5
(1.8)
0.2
(1.6)
25.0
1.0
26.0
(16.9)
9.5
(7.4)
-
(5.0)
(5.0)
16.9
(16.9)
-
(18.1)
(191.0)
(283.7)
8.5
(117.2)
(34.0)
(635.5)
Greene King plc
5.5 Interim Income Statement Reconciliation - 17 October 2004
Adjustments
1
UK GAAP
IAS 17
At 17/10/04 Lease premium
£m
prepayment
Revenue
Operating expenses
Trading profit
2c
IAS 19
Short-term
Benefit
3
IFRS 2
Share based
payments
4
IAS 12
Deferred
tax
5
IAS 10
Dividend
314.4
1.5
0.1
-
(0.3)
65.9
-
1.5
0.1
-
(0.3)
(0.3)
(0.1)
Profit Before Tax
42.7
-
(13.3)
(7.4)
22.0
6
IAS 18
Revenue
Beer duty
7
IFRS 3
Businsess
Combinations
8
Other
adjustments
(12.3)
-
(23.2)
Profit/(loss) for the period
Pension
2b
IAS 19
Post-employment
benefit
(248.5)
Net Finance costs
Tax
Dividends
2a
IAS 19
1.2
-
-
-
302.1
12.3
5.0
(229.9)
-
5.0
72.2
(23.6)
-
(0.4)
(0.3)
0.1
-
-
-
5.0
0.8
-
-
(0.2)
-
48.6
16.9
(14.6)
-
16.9
34.0
(1.0)
(9.5)
-
IFRS
At 17/10/04
£m
(1.0)
(9.5)
-
5.0