Tesco 1999 Annual Report Download - page 29

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TESCO PLC ANNUAL REPORT 1999 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, loss on disposal of discontinued operations
and goodwill amortisation is based on the profit for the financial year of £606m (1998 – £532m).
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 6,627m (1998 – 6,553m).
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.
52 weeks to 53 weeks to
27 Feb 1999 28 Feb 1998
Weighted average number of dilutive share options (m) 153 156
Weighted average number of shares in issue in the period (m) 6,627 6,553
Total number of shares for calculating diluted earnings per share (m) 6,780 6,709
1999 1998
Note 11 Intangible fixed assets £m £m
Cost
At 28 February 1998 ––
Additions at cost 117 –
At 27 February 1999 117 –
Amortisation
At 28 February 1998 ––
Charge for the period 5–
At 27 February 1999 5–
Net carrying value
At 28 February 1998 ––
At 27 February 1999 112 –
Goodwill arising on the purchase of our Thailand business has been capitalised and amortised over 20 years in accordance with the
provisions set out in Financial Reporting Standard 10, ‘Goodwill and Intangible Assets’.