Tesco 2007 Annual Report Download - page 60

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Notes to the financial statements continued
Note 3 Income and expenses
2007 2006
From continuing operations £m £m
Profit before tax is stated after charging/(crediting) the following:
Profit arising on property-related items (92) (77)
Rental income, of which £166m (2006 – £140m) relates to investment properties (210) (175)
Direct operating expenses arising on rental earning investment properties 47 46
Costs of inventories recognised as an expense 31,104 29,640
Stock losses 581 533
Depreciation of property, plant and equipment and investment property 785 758
Net impairment/(reversal of impairment) of property, plant and equipment 19 (5)
Amortisation of internally-generated development intangible assets 69 56
Amortisation of other intangibles 24 20
Operating lease expenses (a) 394 360
(a) Operating lease expenses include £89m (2006 – £71m) for hire of plant and machinery.
During the year, the Group (including its overseas subsidiaries) obtained the following services from the Group’s auditor
and network firms:
2007 2006
£m £m
Audit services
Fees payable to the Company’s auditor for the audit of the Parent Company and consolidated annual accounts 0.6 0.4
Non-audit services
Fees payable to the Company’s auditor and network firms for other services:
– the audit of the accounts of the Company’s subsidiaries pursuant to legislation 2.3 2.3
– other services pursuant to such legislation 0.2 0.3
– other services relating to taxation 2.3 2.5
– other services relating to corporate finance transactions 0.2 0.3
Total auditor remuneration 5.6 5.8
In addition to the amounts shown above, the auditors received fees of £0.1m (2006 – £0.1m) for the audit of the main Group
pension scheme.
A description of the work of the Audit Committee is set out in the Corporate Governance Report on pages 22 to 26 and
includes an explanation of how objectivity and independence is safeguarded when non-audit services are provided by
PricewaterhouseCoopers LLP.
58 Tesco PLC Annual report and financial statements 2007 Find out more at www.tesco.com/corporate