Note 36
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-
-
In 2005 the Company retrospectively adjusted the tax effecting of certain purchase accounting adjustments related to the
acquisition of Alliant by U.S. Foodservice in 2002, as a result of which the deferred tax assets related to U.S. Foodservice
decreased with EUR 19 (USD 25) and goodwill increased for the same amount. This adjustment has no impact on consolidated
net income or group equity as previously reported under Dutch GAAP, but has affected the goodwill and deferred tax balances
carried forward from Dutch GAAP to IFRS.
In 2005 the Company retrospectively adjusted the accounting treatment for one of its multi-employer pension plans from
defined contribution accounting to defined benefit accounting, because it has been established that the share of third party
employers in the plan is insignificant relative to the share of the Company. As a consequence, the plan is essentially similar
to a single employer plan. This change has resulted in an increase of pensions provisions with EUR 16 per 2004 opening and
closing balance and an after tax decrease of group equity of EUR 10. Net income 2004 was not impacted by this change
in accounting treatment.
15 Income taxes
Most differences under IFRS affect the deferred income tax accounting and have therefore changed the deferred income tax
position as previously reported under Dutch GAAP.
January 2, I December
2005 I 29, 2003
Goodwill and other intangible assets with indefinite lives
(24)
Bifurcation of leased land and buildings
(14)
(14)
Other real estate related differences
2
2
Non-current assets held for sale and discontinued operations
(38)
Share-based payments
1
Post-employment benefits
49
172
Discounting of long-term provisions
(3)
(4)
Derivative instruments and revaluation loans
(6)
20
Deferred income taxes on Dutch GAAP to IFRS adjustments
(33)
176
Deferred income taxes on conversion differences in 2004 consolidated net income:
Goodwill and other intangible assets indefinite lives
(24)
Non-current assets held for sale and discontinued operations
(38)
Share-based payments
1
Post-employments benefits
(34)
Discounting of long-term provisions
1
Derivative instruments
(14)
Deferred income taxes on IFRS consolidated net income adjustments
(108)
16 Joint ventures and associates
Under IFRS, Ahold will continue to account for the investments in joint ventures and associates using the equity method,
similarly as was the case under Dutch GAAP. Net equity and consolidated net income as measured and reported under Dutch
GAAP for these joint ventures and associates have been adjusted to reflect the differences in IFRS accounting principles
compared to those applied under Dutch GAAP.
17 Other adjustments
In addition to the changes as a result of the transition to IFRS, Ahold changed the presentation of commercial contributions
paid to associated retailers such as franchisees. Under Dutch GAAP, such contributions were recognized as other financial
assets (non-current and current). Amortization of these assets was deducted from net sales in the statements of operations.
Under IFRS, Ahold reclassified these commercial contributions to other intangible assets (EUR 52) in the consolidated balance
sheets and the amortization to operating expenses (EUR 16) in the consolidated statements of operations.
AHOLD ANNUAL REPORT 2005 185
