Financial results under US Generally Accepted Accounting Principles
a statZtT r"r ,d,",datto" '™d»«< realized and transferred to
fnofndid ilrl0,',he G"n' F°°d' Ah0M reC0,dSd C05,SneCeS5a^, «f its US operations, which „.tie been
ctalTlT' !heth",aend PrC,6,red ,ina"CinE ShS,,S iS reC0,d*d as ,he a"d I»
Du hid us map l a a"S a"""l 8US SUCl> di"dand iS C"ar8ad di,aC,l,,te s,a,e™dtt»'d
hatrirTusGAAPIh*0"""T:i!SUbJeC'acpr°"al by 0,6Ganeral Maa,i"8S,ddkMda'a atcurrent
liability. Under US GAAP, this amount should be classified as a part of stockholders' equity until approved.
The generally accepted accounting principles of The Netherlands which were used to prepare the financial statements of Royal Ahold differ
m r8SPeCtS fr°m th0S8 genera"y aCCepted in the United States ''US GAAP'). The main differences affecting net earnings
and stockholders'equity are as follows:
Goodwill
Goodwill arising from a difference between the purchase price and net asset value of newly acquired companies and participations is
ccounted 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.
The disposal or termination of certain businesses resulted in a write-off of goodwill of EUR 5,306 in 1999 (1998: EUR 2,368).
Pensions
In The Netherlands, pension plans for Royal Ahold's Dutch associates 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.
Revaluation of real estate
'S,aK 'f AWd VaStg0ed b» were °«obe, 1988 ana the resulting gain was added to a reser.e which is part of
the statement of earnings. Such one-time revaluations are not allowed under US GAAP.
Restructuring costs USA
Provisions
esÏmJTn n* ÏÏÏÏT re'ating t0 the CUrrent year and for which the costs invo,ved be reasonably
actu^Ny incurred" reC°gniti°n t0 ™re ml6S a"d theSe Sh°Uld be recognized when
Other
The items included under this heading include, amongst others, the adoption of SOP 98-1 'Accounting for the costs of computer software
developed or obtained forinte™' use', which requires capitalization of certain costs for developing software for internal use when criteria
have been met. Under Dutch GAAP such costs are expensed when incurred.
Dividend cumulative preferred financing shares
mac share a"'e is taken into accoant in calculating the earnings per com-
Dividends common shares
Royal Ahold Annual Report 1999
