Financial statements - Notes to the consolidated financial statements
Note 36
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as used under US GAAP, which also requires separate recognition of the option at fair value. The ICA put option has been
settled (with respect to the Canica part) or waived (with respect to the HIAB part) and was derecognized in the fourth quarter
of 2004. Until the settlement and waiver of the ICA put option in the fourth quarter of 2004, the fair value was remeasured
under IFRS, resulting in a net loss of EUR 70 and a carrying amount of EUR 671.
The portion of the carrying amount that related to the Canica put option (i.e., 20/50 x EUR 671) was, under IFRS, fully set-off
against the purchase price paid for the 20% interest in ICA obtained from Canica, which has resulted in a difference in
goodwill recognized under IFRS for this transaction, compared to the goodwill as recognized under Dutch GAAP. Because
Ahold subsequently sold a 10% interest in ICA to HIAB and derecognized a pro rata share of the related goodwill, the
difference in goodwill recognition resulted in a difference in divestment results of EUR 47. In total, Ahold recognized EUR 135
less goodwill under IFRS than under Dutch GAAP.
The portion of the carrying amount of the put option liability that related to the HIAB option (i.e., 30/50 x EUR 671) was
recognized in the consolidated statement of operations in the fourth quarter of 2004, since that option was waived in
connection with Ahold's sale of a 10% interest in ICA to HIAB and certain changes to the joint venture agreement.
Under Dutch GAAP, Ahold had accounted for an onerous contract provision of EUR 87 in the third quarter of 2004 related to
these transactions. This provision reflected the loss under Dutch GAAP as a result of the put option exercise notice received
from Canica, resulting in a transfer of a 20% interest in ICA to Ahold and the subsequent sale of a 10% interest in ICA to
HIAB. Since the option was already accounted for under IFRS at the estimated (negative) fair value, this provision was not
required under IFRS.
The impact of these differences on 2004 consolidated net income under IFRS can be summarized as follows:
Loss put option liability
(70)
Divestment result 10% sale to HIAB
47
Waived put option by HIAB
402
Onerous contract provision
87
Total
466
14 Consolidation criteria
Under Dutch GAAP, certain stores acquired from franchisees were not consolidated, as these stores were temporarily operated
by a subsidiary of Ahold with the intention to enter into a new franchise contract with a third party and to sell the store to
a franchisee. IFRS requires these stores to be consolidated. The impact of the consolidation of temporarily held stores on
consolidated assets and liabilities as of January 2, 2005 and consolidated net sales and net income in 2004 under IFRS
is as follows:
Total assets
11
Total liabilities
11
Net sales
14
Net income
184
