AMVESCAP PLC Reports Results for Three Months Ended March 31, 2005.LONDON London, city, Canada London, city (1991 pop. 303,165), SE Ont., Canada, on the Thames River. The site was chosen in 1792 by Governor Simcoe to be the capital of Upper Canada, but York was made capital instead. London was settled in 1826. -- AMVESCAP (NYSE NYSE See: New York Stock Exchange :AVZ) (LSE LSE - Language Sensitive Editor :AVZ) (TSX TSX Toronto Stock Exchange (TSE before April, 2002) TSX Transfer from Stack Pointer to Index TSX True Space Extension :AVZ) reported that profit before tax for the three months ended March 31, 2005 amounted to GBP GBP In currencies, this is the abbreviation for the British Pound. Notes: The currency market, also known as the Foreign Exchange market, is the largest financial market in the world, with a daily average volume of over US $1 trillion. 59.1 million ($111.7 million) compared to GBP 73.6 million ($135.4 million) for the first quarter of 2004, which included a gain of GBP 6.4 million from the sale of a business. Revenues totaled GBP 286.0 million ($540.5 million) for the first quarter of 2005, compared to GBP 288.3 million ($530.5 million) in 2004. Diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of amounted to 4.7p for the 2005 period, compared to 5.9p for 2004's first quarter.
Results for Three Months Ended March 31,
2005 2004(a) 2005(c) 2004(c)
----------- ----------- --------- ---------
Revenues GBP 286.0m GBP 288.3m $540.5m $530.5m
Profit before tax GBP 59.1m GBP 73.6m $111.7m $135.4m
Earnings per share:
--basic 4.8p 5.9p $0.18(b) $0.22(b)
--diluted 4.7p 5.9p $0.18(b) $0.22(b)
----------------------------------------------------------------------
(a) 2004 results have been restated in accordance Accordance is Bible Study Software for Macintosh developed by OakTree Software, Inc.[] As well as a standalone program, it is the base software packaged by Zondervan in their Bible Study suites for Macintosh. with International Financial Reporting Standards International Financial Reporting Standards (IFRS) are standards and interpretations adopted by the International Accounting Standards Board (IASB). Many of the standards forming part of IFRS are known by the older name of International Accounting Standards (IAS). ("IFRS IFRS International Financial Reporting Standard(s) IFRS Inter Frame Relay Service IFRS Indiana Facilities Registry System "). See Note 8 for a reconciliation of AMVESCAP's U.K. GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). results to IFRS. (b) Per American Depositary Share American Depositary Share (ADS) Foreign stock issued in the US and registered in the ADR system. equivalent to 2 ordinary shares. (c) For the convenience of the reader, pounds sterling for the three months ended March 31, 2005 have been translated to US dollars using $1.89 per GBP 1.00 (2004: $1.84 per GBP 1.00). References to "$" in this release are to U.S. dollars unless otherwise indicated. "AMVESCAP's businesses in the U.K. and Canada Canada (kăn`ədə), independent nation (2001 pop. 30,007,094), 3,851,787 sq mi (9,976,128 sq km), N North America. Canada occupies all of North America N of the United States (and E of Alaska) except for Greenland and the French islands of continue to show good results, as we concentrate our efforts on meeting the challenges that remain in our U.S. businesses," said Mr. Charles Charles, archduke of Austria Charles, 1771–1847, archduke of Austria; brother of Holy Roman Emperor Francis II. Despite his epilepsy, he was the ablest Austrian commander in the French Revolutionary and Napoleonic wars; however, he was handicapped by W. Brady Bra·dy , James Buchanan Known as "Diamond Jim." 1856-1917. American financier and philanthropist who gained his nickname because of his attraction to diamonds and his extravagant lifestyle. Noun 1. , Executive Chairman. "At a time of weak markets, AMVESCAP made progress increasing gross sales Gross Sales A measure of overall sales that isn't adjusted for customer discounts or returns, calculated simply by adding all sales invoices, and not including operating expenses, cost of goods sold, payment of taxes, or any other charge. and reducing net redemptions from the prior quarter, and last week's announcement of the sale of our retirement business illustrates how we are sharpening For image sharpening, see . Sharpening is the process of creating or refining a sharp edge on a tool or implement. The term has a wide application but can be expressed as the creation of two intersecting planes which produce an edge that is sharp enough to cut through the target our focus on those areas of asset management where we have the greatest opportunity to excel." Effective January January: see month. 1, 2005, AMVESCAP began recording its results of operations under International Financial Reporting Standards ("IFRS"). Prior to this date, AMVESCAP prepared its consolidated financial statements Consolidated Financial Statements The combined financial statements of a parent company and its subsidiaries. Notes: Because consolidated financial statements present an aggregated look at the financial position of a parent and its subsidiaries, they enable you to gauge under U.K. Generally Accepted Accounting Practice ("U.K. GAAP"). The most significant changes affecting AMVESCAP's financial reporting due to the IFRS transition are: --The cessation cessation Vox populi The stopping of a thing. See Smoking cessation. of goodwill amortization (IFRS 3) and redenomination Redenomination The process of changing the currency value on a financial security. Notes: A great example is when the denomination on many European securities needed to be changed to the Euro. See also: Currency of goodwill to the currency of the underlying acquired entities (IAS See iPlanet Application Server. 1. (computer) IAS - The first modern computer. It had main registers, processing circuits, information paths within the central processing unit, and used Von Neumann's fetch-execute cycle. 21) --The inclusion of a fair value charge in respect of outstanding employee share options granted after November November: see month. 7, 2002 (IFRS 2) --The replacement of existing charges for awards under certain equity-based compensation plans with fair value charges spread over revised time periods (IFRS 2) --The inclusion in the balance sheet of all employee benefit liabilities (IAS 19) The underlying business transactions and cashflows of AMVESCAP did not change upon transition to IFRS. The transition to IFRS resulted in the reduction of total shareholders' funds under UK GAAP UK GAAP United Kingdom Generally Accepted Accounting Principles at January 1, 2004 (transition date) of GBP 118 million. This reduction is due primarily to the redenomination of goodwill and management contract intangible assets Intangible Asset An asset that is not physical in nature. Notes: Examples are things like copyrights, patents, intellectual property, and goodwill. These are the opposite of tangible assets. into the currency of the underlying acquired entities. Under U.K. GAAP, these balances were recorded in pounds sterling. For the year ended December December: see month. 31, 2004, the transition to IFRS resulted in the addition of GBP 154 million to profit for the year, primarily due to the amortization of goodwill previously recorded under U.K. GAAP being credited into income. Diluted earnings per share for the quarter ended March 31, 2004 was 5.9p under IFRS, compared with 1.1p under U.K. GAAP. Diluted earnings per share under U.K. GAAP before goodwill amortization was 5.8p for the quarter ended March 31, 2004. See Note 8 for further details. AMVESCAP's first Annual Report under IFRS will be for the year ended December 31, 2005. The information presented in this earnings release is subject to the ongoing development of IFRS. Funds under management totaled $375.4 billion at March 31, 2005, compared to $382.1 billion at December 31, 2004. Institutional money market funds, included above, amounted to $40.7 billion at March 31, 2005, compared to $41.7 billion at December 31, 2004. Average funds under management amounted to $377.4 billion for the first quarter of 2005 compared to $376.3 billion for the first quarter of 2004 and $374.0 billion for the fourth quarter of 2004. Approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. 54% the total funds under management were invested in equity securities, and 46% were invested in fixed income securities at March 31, 2005. The equity securities were invested in the following disciplines at March 31, 2005: 34% in growth, 38% in core, and 28% in value styles (December 31, 2004: 34% in growth, 39% in core and 27% in value styles). Changes in funds under management during the first quarter of 2005 are as follows:
AIM INVESCO
--------------- -----------------------
Europe/
(billions) Total U.S. Canada U.S. U.K. Asia PWM
------- ------- ------- ------- ------ -------- --------
Dec 31, 2004 $382.1 $137.6 $34.6 $121.0 $49.6 $24.1 $15.2
Market gains/
(losses) (1.4) (1.8) 0.3 (0.9) 0.8 0.4 (0.2)
Net new/(lost)
business (2.5) (2.9) 0.4 (2.0) 2.2 (0.2) (0.0)
Change in
money
market
funds (1.9) (1.9) -- -- -- -- --
Foreign
currency (0.9) -- 0.6 (0.1) (1.0) (0.4) --
------- ------- ------- ------- ------ -------- --------
March 31, $375.4 $131.0 $35.9 $118.0 $51.6 $23.9 $15.0
2005 ======= ======= ======= ======= ====== ======== ========
March 31, GBP GBP GBP GBP GBP GBP GBP 7.9
2005 (a) 198.6 69.3 19.0 62.4 27.3 12.7
======= ======= ======= ======= ====== ======== ========
(a) Translated at $1.89 per GBP 1.00. Earnings before interest, taxes, depreciation, amortization and share-based payment ("EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) A metric used to show a company's profitability, but not its cash flow. EBITDA became popular in the 1980s to show the potential profitability of leveraged buyouts, but has become ") amounted to GBP 88.8 million ($167.8 million) in the three months ended March 31, 2005, compared to GBP 100.8 million ($185.5 million) for the first quarter of 2004. Net debt at March 31, 2005 amounted to GBP 555.7million compared to GBP 590.9 million at the end of 2004, excluding client cash. AMVESCAP is a leading independent global investment manager dedicated to helping people worldwide build their financial security. Operating under the AIM, AIM Trimark, INVESCO INVESCO, (NYSE: IVZ) is an investment management company based in London, England, UK. It is quoted on the London Stock Exchange and is a member of the FTSE 100 Index. It has branches in 19 countries, but more than half of its business is in the United States. , INVESCO Perpetual Invesco Perpetual is an investment company based in Henley-on-Thames, Oxfordshire, England. It was originally founded as by Sir Martyn Arbib and before it merged with Invesco it was known first as Perpetual Mutual then as Perpetual plc. and Atlantic Trust brands, AMVESCAP strives to deliver outstanding products and services through a comprehensive array of retail and institutional products for clients around the world. The Company is listed on the London, New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of and Toronto stock exchanges Toronto Stock Exchange (TSE) Canada's largest stock exchange, trading approximately 1,200 company stocks and 33 options. with the symbol "AVZ." Additional information is available at www.amvescap.com. Members of the investment community and general public are invited to listen to the conference call today, Tuesday Tuesday: see week. , April 26, 2005, at 2:30 p.m. BST (convention) BST - British Summer Time. The name for daylight-saving time in the UK GMT time zone. (9:30 a.m. EDT EDT abbr. Eastern Daylight Time EDT Eastern Daylight Time EDT n abbr (US) (= Eastern Daylight Time) → hora de verano de Nueva York EDT ), by dialing one of the following numbers: 610-769-9391 or 1-888-201-4990 for U.S. callers. An audio replay of the conference call will be available until Tuesday, May 3, 2005, at 10:00 p.m. BST by calling 402-280-9915 or 1-800-873-1631 for U.S. callers. The presentation slides that will be reviewed during the conference call will be available on AMVESCAP's Web site at www.amvescap.com. This release may include statements that constitute "forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. " under the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. securities laws. Forward-looking statements include information concerning possible or assumed future results of our operations, earnings, liquidity, cash flow and capital expenditures, industry or market conditions, assets under management Assets Under Management (AUM) is a term used by financial services companies in the mutual fund and money management or investment management business to gauge how much money they are managing. , acquisition activities and the effect of completed acquisitions, debt levels and the ability to obtain additional financing or make payments on our debt, regulatory reg·u·late tr.v. reg·u·lat·ed, reg·u·lat·ing, reg·u·lates 1. To control or direct according to rule, principle, or law. 2. developments, demand for and pricing of our products and other aspects of our business or general economic conditions. In addition, when used in this report, words such as "believes," "expects," "anticipates," "intends," "plans," "estimates," "projects" and future or conditional Subject to change; dependent upon or granted based on the occurrence of a future, uncertain event. A conditional payment is the payment of a debt or obligation contingent upon the performance of a certain specified act. verbs such as "will," "may," "could," "should," and "would" or any other statement that necessarily depends on future events, are intended to identify forward-looking statements. Forward-looking statements are not guarantees of performance. They involve risks, uncertainties and assumptions. Although we make such statements based on assumptions that we believe to be reasonable, there can be no assurance that actual results will not differ materially from our expectations. We caution investors not to rely unduly on any forward-looking statements. In connection with any forward-looking statements, you should carefully consider the areas of risk described in our most recent Annual Report on Form 20-F, as filed with the United States Securities and Exchange Commission (SEC). You may obtain these reports from the SEC's Web site at www.sec.gov See .gov and GovNet. (networking) gov - The top-level domain for US government bodies. . AMVESCAP PLC Consolidated Income Statement consolidated income statement An income statement that combines the income statements of two or more organizations. As with other consolidated statements, a consolidated income statement eliminates any funds owed to or due from firms within the same group. (in thousands)
Three Months Ended March 31,
--------------------------------
2005 2004
---------------- --------------
Revenues GBP 285,984 GBP 288,284
Operating expenses (217,158) (214,043)
---------------- --------------
Operating profit 68,826 74,241
Investment income 1,408 9,045
Interest expense (11,159) (9,698)
---------------- --------------
Profit before taxation 59,075 73,588
Taxation (21,110) (26,100)
---------------- --------------
Profit after taxation 37,965 47,488
Minority interests (78) (84)
---------------- --------------
Profit for the period attributable to GBP 37,887 GBP 47,404
equity holders of the parent
================ ==============
Earnings per share:
---basic 4.8p 5.9p
---diluted 4.7p 5.9p
---------------- --------------
Average shares outstanding:
---basic 793,434 802,353
---diluted 800,668 809,767
---------------- --------------
AMVESCAP PLC Consolidated Balance Sheet consolidated balance sheet A balance sheet in which assets and liabilities of a parent company and its controlled subsidiaries are combined, thereby presenting balance sheet items for the parent and its subsidiaries as if they were a single firm. (in thousands)
March 31, 2005 Dec 31, 2004
--------------- --------------
Non-current assets
Goodwill and intangible assets GBP 2,364,733 GBP 2,317,247
Property and equipment 115,314 118,272
Investments 90,838 70,070
--------------- --------------
2,570,885 2,505,589
Currents assets
Trade and other receivables 1,073,973 1,021,076
Investments 76,650 84,483
Cash and cash equivalents 242,592 284,977
--------------- --------------
1,393,215 1,390,536
Total assets 3,964,100 3,896,125
--------------- --------------
Current liabilities
Current maturities of long-term
debt (42,471) (41,411)
Trade and other payables (1,204,913) (1,196,981)
--------------- --------------
(1,247,384) (1,238,392)
Net current assets 145,831 152,144
--------------- --------------
Non-current liabilities
Long-term debt (644,041) (683,215)
Provisions for liabilities and
charges (121,704) (124,793)
--------------- --------------
Total liabilities (2,013,129) (2,046,400)
--------------- --------------
Net assets GBP 1,950,971 GBP 1,849,725
=============== ==============
Equity
Share capital GBP 202,790 GBP 202,664
Share premium 702,419 700,888
Shares held by employee trusts (237,972) (237,972)
Exchangeable shares 308,996 308,996
Retained earnings 308,993 271,106
Other reserves 664,358 602,729
--------------- --------------
Equity attributable to equity
holders of the parent 1,949,584 1,848,411
Minority interests 1,387 1,314
--------------- --------------
Total equity GBP 1,950,971 GBP 1,849,725
=============== ==============
AMVESCAP PLC Consolidated con·sol·i·date v. con·sol·i·dat·ed, con·sol·i·dat·ing, con·sol·i·dates v.tr. 1. To unite into one system or whole; combine: Cash Flow Statement (in thousands)
Three Months Ended March
31,
------------------------
2005 2004
------------ ----------
Operating profit GBP 68,826 GBP 74,241
Amortization and depreciation 11,147 12,371
Interest paid, net of investment income (10,445) (9,498)
Taxation (11,522) (8,152)
Change in debtors, creditors, and other (45,070) (85,333)
------------ ----------
Net cash inflow/(outflow) from operating
activities 12,936 (16,371)
Investing activities:
Capital expenditures, net of sales (4,340) (7,889)
(Purchase)/disposals of fixed asset
investments, net (2,409) 1,173
Acquisitions and dispositions -- (28,195)
Financing (56,476) (10,047)
------------ ----------
Decrease in cash and cash equivalents (50,289) (61,329)
Foreign exchange 7,904 (6,128)
Cash and cash equivalents, beginning of period 284,977 318,713
------------ ----------
Cash and cash equivalents, end of period GBP 242,592 GBP
251,256
============ ==========
AMVESCAP PLC Segmental segmental /seg·men·tal/ (seg-men´t'l) 1. pertaining to or forming a segment or a product of division, especially into serially arranged or nearly equal parts. 2. undergoing segmentation. Information (in thousands)
Three Months Ended March 31, 2005
Operating
Revenues Expenses Profit
-------------- ------------- -------------
AIM
U.S. GBP 100,578 GBP (65,725) GBP 34,853
Canada 47,124 (20,955) 26,169
-------------- ------------- -------------
147,702 (86,680) 61,022
-------------- ------------- -------------
INVESCO
U.S. 50,084 (38,568) 11,516
U.K. 52,733 (45,376) 7,357
Europe/Asia 15,938 (16,571) (633)
-------------- ------------- -------------
118,755 (100,515) 18,240
-------------- ------------- -------------
Private Wealth/Retirement 19,527 (21,606) (2,079)
-------------- ------------- -------------
285,984 (208,801) 77,183
Corporate -- (8,357) (8,357)
-------------- ------------- -------------
GBP
GBP 285,984 (217,158) GBP 68,826
============== ============= =============
Three Months Ended March 31, 2004
Operating
Revenues Expenses Profit
--------------- -------------- --------------
AIM
U.S. GBP 114,035 GBP (70,324) GBP 43,711
Canada 41,817 (20,656) 21,161
--------------- -------------- --------------
155,852 (90,980) 64,872
--------------- -------------- --------------
INVESCO
U.S. 47,368 (33,774) 13,594
U.K. 46,107 (40,584) 5,523
Europe/Asia 19,786 (20,102) (316)
--------------- -------------- --------------
113,261 (94,460) 18,801
--------------- -------------- --------------
Private Wealth/Retirement 19,171 (20,145) (974)
--------------- -------------- --------------
288,284 (205,585) 82,699
Corporate -- (8,458) (8,458)
--------------- -------------- --------------
GBP 288,284 GBP (214,043) GBP 74,241
=============== ============== ==============
Notes 1. Accounting policies The accounting policies used in the preparation of the earnings release follow International Financial Reporting Standards ("IFRS") in effect as of the date of this release. The comparative period has been restated to apply these IFRS on a consistent basis (see Note 8). The most significant changes due to the IFRS transition are: --The cessation of goodwill amortization (IFRS 3) and redenomination of goodwill to the currency of the underlying acquired entities (IAS 21) --The inclusion of a fair value charge in respect of outstanding employee share options granted after November 7, 2002 (IFRS 2) --The replacement of existing charges for awards under certain equity-based compensation plans with fair value charges spread over revised time periods (IFRS 2) --The inclusion in the balance sheet of all employee benefit liabilities (IAS 19) 2. Adoption of accounting standards The Group has adopted IAS 32, "Financial Instruments: Disclosure and Presentation" and IAS 39, "Financial Instruments: Recognition and Measurement" as of January 1, 2005. These standards require that financial assets Financial assets Claims on real assets. and liabilities be recognized on the balance sheet and accounted for according to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. their underlying classification. Shareholders equity increased by GBP 15.2 million as a result of these changes primarily arising from the recognition of net unrealized gains Unrealized Gain A profit that results from holding on to an asset rather than cashing it in and using the funds. Notes: Let's say you own a stock that has doubled, but you haven't sold it yet. This is said to be an unrealized gain. on investments classified as available for sale. 3. Taxation The taxation charge is primarily due to overseas taxation. A significant proportion of the tax charge is expected to arise from U.S. operations. The estimated effective tax rate is 35.7% in 2005 (2004: 35.5%). 4. Earnings per share Basic earnings per share is based on the weighted average number of ordinary and exchangeable shares outstanding during the respective periods excluding shares purchased and held by employee share ownership trusts. Diluted earnings per share takes into account the effect of the potential issuance ordinary shares.
2005
--------------------------------------
Profit for Number of Per share
the period shares
GBP '000 '000 amount
------------- ------------- ----------
Basic earnings per share 37,887 793,434 4.8p
==========
Dilutive effect of share-based
awards -- 7,234
------------- -------------
Diluted earnings per share 37,887 800,668 4.7p
============= ============= ==========
2004
-----------------------------------
Profit for Number of Per share
the period shares
GBP '000 '000 amount
----------- ------------ ----------
Basic earnings per share 47,404 802,353 5.9p
==========
Dilutive effect of share-based
awards -- 7,414
----------- ------------
Diluted earnings per share 47,404 809,767 5.9p
=========== ============ ==========
5. Dividends A final dividend in respect of the 2004 year of GBP 40,978,000 (5.0p per share) will be proposed at the Annual General Meeting of Shareholders to be held on April 28, 2005. If approved, this dividend will be accrued ac·crue v. ac·crued, ac·cru·ing, ac·crues v.intr. 1. To come to one as a gain, addition, or increment: interest accruing in my savings account. 2. on that date and will be paid on May 4, 2005, to shareholders on the register on April 1, 2005. 6. Credit facility On March 31, 2005, the Company entered into a new five-year credit agreement ("credit facility") with a group of lenders, providing a revolving credit Revolving Credit A line of credit where the customer pays a commitment fee and is then allowed to use the funds when they are needed. It is usually used for operating purposes, fluctuating each month depending on the customers current cash flow needs. facility in an aggregate principal amount of up to $900 million. Under certain conditions, the aggregate commitments under the credit facility may be increased to $1.2 billion. The credit facility requires specified financial ratios to be maintained, including maximum debt to earnings and minimum interest coverage. 7. Sale of business On April 21, 2005 the sale of the AMVESCAP Retirement division was announced. The transaction is expected to close during the second half of the year. 8. Reconciliations from U.K. GAAP to IFRS Prior to December 31, 2004, AMVESCAP reported its results of operations under U.K. Generally Accepted Accounting Practice ("U.K. GAAP"). Beginning January 1, 2005, AMVESCAP transitioned from U.K. GAAP to International Financial Reporting Standards ("IFRS"). The tables below reconcile total shareholders' funds at December 31, 2003, and December 31, 2004 under U.K. GAAP to total equity under IFRS, and profit/(loss) after taxation for the three months ended March 31, 2004 and the year ended December 31, 2004 from U.K. GAAP to IFRS. Amounts are presented in millions. Reconciliation of total U.K. GAAP total shareholders' funds to IFRS total equity
Dec 31, 2003 Dec 31, 2004
-----------------------------------
U.K. GAAP total shareholders' funds GBP 2,065 GBP 1,864
IFRS Transition Adjustments:
Goodwill and intangibles (130) (16)
Shared based payment (7) (7)
Defined benefit obligation, net (31) (30)
Dividends 53 41
Other (3) (2)
-----------------------------------
IFRS total equity GBP 1,947 GBP 1,850
===================================
Reconciliation of U.K. GAAP profit/(loss) after taxation to IFRS profit/(loss) after taxation
Three months Year ended
ended Dec 31, 2004
March 31, 2004
-------------------------------
U.K. GAAP profit/(loss) after taxation GBP 9 GBP (173)
IFRS Transition Adjustments:
Goodwill and intangibles 37 153
Defined benefit obligation, net 1 --
Sale of business 3 3
Other (3) (2)
-------------------------------
IFRS profit/(loss) after taxation GBP 47 GBP (19)
===============================
IFRS Transition Adjustments: Goodwill and intangibles Property that is a "right" such as a patent, Copyright, or trademark, or one that is lacking physical existence, such as good will. . The Group has chosen to apply IFRS 3 prospectively from the date of transition. This has resulted in the value of goodwill arising from previous acquisitions being frozen at the value held on the Group balance sheet at January 1, 2004 and the reversal reversal n. the decision of a court of appeal ruling that the judgment of a lower court was incorrect and is reversed. The result is that the lower court which tried the case is instructed to dismiss the original action, retry the case, or is ordered to change its of any amortization charged in 2004. The Group has elected e·lect v. e·lect·ed, e·lect·ing, e·lects v.tr. 1. To select by vote for an office or for membership. 2. To pick out; select: elect an art course. to apply IAS 21 retrospectively ret·ro·spec·tive adj. 1. Looking back on, contemplating, or directed to the past. 2. Looking or directed backward. 3. Applying to or influencing the past; retroactive. 4. to its goodwill and intangible asset balances, which were previously recorded in pounds sterling from their respective acquisition dates. The result of this application is that the goodwill and intangible assets have been redenominated into their underlying currencies and will subsequently be re-measured each reporting date for the effect of changes in foreign exchange rates. Share-based payment. The Group will recognize a charge in the Profit and Loss Account for the fair value of outstanding share awards granted to employees after November 7, 2002. The charge has been calculated using a stochastic By guesswork; by chance; using or containing random values. stochastic - probabilistic option valuation model and will be charged over the relevant vesting Vesting The process by which employees accrue non-forfeitable rights over employer contributions that are made to the employee's qualified retirement plan account. Notes: periods, adjusted to reflect expected and actual levels of vesting. Defined benefit obligation, net. The Group will recognize the net liability for defined benefit post retirement plan schemes on the balance sheet and will take actuarial ac·tu·ar·y n. pl. ac·tu·ar·ies A statistician who computes insurance risks and premiums. [Latin gains and losses on a systematic basis to the Profit and Loss Account, in accordance with the permitted methods of recognition under IAS 19. Sale of business. During 2004, the Group disposed dis·pose v. dis·posed, dis·pos·ing, dis·pos·es v.tr. 1. To place or set in a particular order; arrange. 2. of its U.K. and Jersey businesses of Atlantic Wealth Management and included the previously written off goodwill related to this business in the calculation of the net gain resulting from the sale. Under IFRS 1 goodwill previously deducted de·duct v. de·duct·ed, de·duct·ing, de·ducts v.tr. 1. To take away (a quantity) from another; subtract. 2. To derive by deduction; deduce. v.intr. from equity is not recognized in the opening balance sheet and that goodwill is not transferred into the Profit and Loss Account upon disposal of the business. This had the effect of increasing the gain reported under U.K. GAAP. Dividends. The Group will recognize dividends declared de·clare v. de·clared, de·clar·ing, de·clares v.tr. 1. To make known formally or officially. See Synonyms at announce. 2. To state emphatically or authoritatively; affirm. 3. after the balance sheet date in the reporting period in which they are declared, as they represent non-adjusting events after the balance sheet date. Other. Other adjustments upon transition to IFRS include the recognition and establishment of accruals Accruals Accounts on a balance sheet that represent liabilities and non-cash-based assets used in accrual-based accounting. These accounts include, among many others, accounts payable, accounts receivable, goodwill, future tax liability and future interest expense. related to compensated compensated /com·pen·sat·ed/ (kom´pen-sa?tid) counterbalanced; offset. absences, foreign exchange items and certain tax adjustments. |
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