Tesco 2000 Annual Report Download - page 29

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TESCO PLC
27
NOTE 10 Earnings per share and diluted earnings per share
Earnings per share and diluted earnings per share have been calculated in accordance with Financial Reporting Standard 14,‘Earnings per
Share’.The standard requires that earnings should be based on the net profit attributable to ordinary shareholders.The calculation for
earnings, including and excluding integration costs, net loss on disposal of fixed assets and goodwill amortisation, is based on the profit for
the financial year of £674m (1999 – £606m).
For the purposes of calculating earnings per share, the number of shares is the weighted average number of ordinary shares in issue
during the year of 6,693m (1999 – 6,627m).
The calculation for diluted earnings per share uses the weighted average number of ordinary shares in issue adjusted by the effects of
all dilutive potential ordinary shares.The dilution effect is calculated on the full exercise of all ordinary share options granted by the Group,
including performance based options which the Group consider to have been earned. The calculation compares the difference between
the exercise price of exercisable ordinary share options, weighted for the period over which they were outstanding, with the average daily
mid-market closing price over the period.
2000 1999
Weighted average number of dilutive share options (million) 124 153
Weighted average number of shares in issue in the period (million) 6,693 6,627
Total number of shares for calculating diluted earnings per share (million) 6,817 6,780
NOTE 11 Intangible fixed assets
2000 1999
£m £m
Cost
At 27 February 1999 117 –
Additions at cost 31 117
At 26 February 2000 148 117
Amortisation
At 27 February 1999 5–
Charge for the period 75
At 26 February 2000 12 5
Net carrying value
At 27 February 1999 112 –
At 26 February 2000 136 112
Goodwill arising on the purchase of our businesses in South Korea and Thailand has been capitalised and amortised over 20 years in
accordance with the provisions set out in Financial Reporting Standard 10,‘Goodwill and Intangible Assets’.
During the year, our Thailand business increased its share capital by rights issues and the Group purchased shares generating additional
goodwill of £25m. As a result of this, the Group shareholding has increased from 75% to 93%.