RBS 2005 Annual Report Download - page 229

section
03
Financial
statements
227
Notes on the accounts
Annual Report and Accounts 2005
Selected figures in accordance with US GAAP
The following tables summarise the significant adjustments to consolidated net income available for ordinary shareholders and
shareholders’ equity which would result from the application of US GAAP instead of IFRS. Where applicable, the adjustments
are stated gross of tax with the tax effect shown separately in total.
2005 2004
Consolidated statement of income £m £m
Profit attributable to ordinary shareholders – IFRS 5,392 4,856
Adjustments in respect of:
Acquisition accounting —66
Property revaluation and depreciation (90) (65)
Leasehold property provisions (26) (19)
Loan origination 55 (85)
Pension costs (363) (283)
Long-term assurance business 10 (17)
Extinguishment of liabilities — (94)
Financial instruments (556) (628)
Derivatives and hedging (119) 73
Liabilities and equity 74 —
Intangible assets – timing difference (66) (95)
Other (59) (40)
Taxation 223 240
Net income available for ordinary shareholders – US GAAP 4,475 3,909
2005 2004
Consolidated shareholders’ equity £m £m
Shareholders’ equity – IFRS 35,435 33,905
Adjustments in respect of:
Acquisition accounting 517 517
Property revaluation and depreciation (403) (313)
Leasehold property provisions 38 64
Loan origination 614 (373)
Pension costs 145 215
Long-term assurance business (47) (163)
Extinguishment of liabilities — (178)
Financial instruments (259) 76
Derivatives and hedging 260 238
Liabilities and equity 2,298 —
Intangible assets – timing difference 1,919 1,985
Other — 140
Taxation (288) 78
Shareholders’ equity – US GAAP 40,229 36,191
Total assets under US GAAP of £700.4 billion (2004 – £631.1 billion) primarily reflects the effect of certain arrangements that can be
netted under US GAAP, together with the effect of adjustments made to shareholders’ equity.