Note 36
36 RECONCILIATION OF DUTCH GAAP TO IFRS
Changes to the presentation in the balance sheet and statement of operations on adoption of IFRS
Reconciliations of group equity as of January 2, 2005 and December 29, 2003
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-
-
-
On May 17, 2005, Ahold announced the impact of the adoption of IFRS for 2004 by publishing an IFRS Technical Conversion
Memo and related press release (both available at www.ahold.com). The IFRS financial information for 2004 as disclosed in
that memo has subsequently been impacted by immaterial changes, with the effect of decreasing group equity under IFRS at
January 2, 2005 by EUR 11, and decreasing 2004 consolidated net income under IFRS by EUR 1 as further described below.
These changes relate to the consolidation of certain stores acquired from franchisees, changes in the amounts related to the
bifurcation of leased land and buildings and the accounting for one of the group's pension plans as a single-employer plan,
where the plan was previously accounted for as a multi-employer plan.
In the IFRS Technical Conversion Memo the impact of the adoption of IFRS was presented in the format of the balance sheet
and statement of operations as applied by the Company under Dutch GAAP in 2004. Upon adopting IFRS the Company has
changed the format of its balance sheet and statement of operations in these financial statements to comply with IFRS
presentation requirements. The most significant presentation differences under IFRS compared to Dutch GAAP that are
relevant for Ahold are (i) a separate presentation of assets, liabilities, income and expenses related to discontinued operations,
(ii) provisions are presented as (current and non-current) liabilities, (iii) share in income (loss) of joint ventures and associates
is presented as part of income (loss) before income taxes and (iv) net income (loss) attributable to minority interests is
presented as an appropriation of net income (loss).
January 2, [December 29,
Note
Group equity in accordance with Dutch GAAP
4,666
4,922
Adjustments to arrive at group equity in accordance with IFRS
Goodwill and other intangible assets with indefinite lives
1
128
Bifurcation of leased land and buildings
2
39
41
Other real estate related differences
3
(13)
(22)
Non-current assets held for sale and discontinued operations
4
47
Cumulative preferred financing shares
7
(666)
(666)
Convertible bond
8
28
Post-employment benefits
10
(84)
(456)
Discounting of long-term provisions
11
9
11
Derivative instruments and revaluation loans
12
2
(74)
ICA put option
13
(601)
Goodwill ICA
13
(135)
Deferred tax impact on adjustments to IFRS
15
(33)
176
IFRS impact on joint ventures and associates
16
2
(5)
Other adjustments
17
(10)
(10)
Total adjustments to arrive at group equity in accordance with IFRS
(714)
(1,578)
Group equity in accordance with IFRS
3,952
3,344
AHOLD ANNUAL REPORT 2005 175
