Financial Results under US Generally Accepted Accounting Principles
#-
o_
(Amounts in NLG thousands)
Goodwill
Pensions
Revaluation
of real estate
Dividends
The generally accepted accounting principles of The Netherlands which were used to prepare the financial
statements of Royal Ahold differ in certain material respects from those generally accepted in the United States
('US GAAP'). The main differences affecting net earnings and stockholders' equity are as follows:
Goodwill arising from a difference between the purchase price and net asset value of newly acquii ed companies and
participations is accounted for directly in stockholders' equity and minority interest, if applicable, in the year of
acquisition. Under US GAAP, goodwill is capitalized as an intangible asset and is amortized over a period of 40 years.
In 1995 discontinued operations resulted in a write-off of goodwill of 41,729 (1994: 15,197).
In The Netherlands, pension plans for Royal Ahold's Dutch employees are accounted for under an actuarial method
of determining costs in relation to actual annual wages. Under US GAAP, a specific actuarial method is required
under statement of Financial Accounting Standards No. 87. Required methods of funding the plans also vary.
The real estate assets of Ahold Vastgoed bv were revalued in October 1988 and the resulting gain was added to a
reserve which is part of stockholders' equity. Upon selling revalued real estate, the relevant part of the revaluation
reserve is considered realized and transferred to the statement of earnings. Such one-time revaluations are not
allowed under US GAAP.
The proposed final dividend which is subject to approval by the General Meeting of Stockholders is recorded as a
current liability. Under US GAAP, this amount should be classified as a part of stockholders equity until approved.
The calculation of net earnings and stockholders' equity, substantially in accordance with US GAAP, is as follows:
Earnings per share
1)91 1992 1993 1994 1995
US GAAF
Dutch GAAP
Group equity as a of assets
20-
0
1991 1992 1993 1994 1995
US GAAP
■i Dutch GAAP
Royal Ahold's net earnings per consolidated statement of earnings
Adjustments to reported net earnings
Goodwill, amortization
Goodwill on discontinued operations
Pensions
Revaluation of real estate, depreciation
Approximate net earnings in accordance with US GAAP
Royal Ahold's stockholders' equity per consolidated balance sheet
Adjustments to reported equity
Goodwill
Pensions
Revaluation of real estate
Dividends
Other
Approximate stockholders' equity in accordance with US GAAP
Net earnings per common share in accordance with Dutch accounting principles
Approximate net earnings per common share in accordance with US GAAP
Fiscal
1995
Fiscal
1994
456,581
409,541
(33,308)
(29,135)
(41,729)
(15,197)
23,630
23,070
4,771
4,085
409,945
392,364
December 31,
January 1,
1995
1995
2,241,860
2,220,354
1,365,089
1,120,594
166,003
142,373
(95,709)
(102,385)
130,497
115,556
(29,056)
(42,690)
3,778,684
3,453,802
3.74
3.44
3.36
3.30
Annual Report 1995 Royal Ahold 55
