Note 34, 35
35 Reconciliation of IFRS to US GAAP
Ahold's consolidated financial statements have been
prepared in accordance with IFRS, as adopted by the EU,
which differs in certain significant respects from US GAAP.
Such differences include methods for measuring the
amounts shown in the consolidated financial statements,
presentation of items in the consolidated balance sheets and
consolidated statements of operations as well as additional
disclosures required by US GAAP.
The principal differences between IFRS and US GAAP for
the Company are quantified and described below.
a. Reconciliation of net income (loss) and shareholders'
equity from IFRS to US GAAP
The effects of the application of US GAAP on net income for
2006, 2005 and 2004 are set out in the table below:
Note 2006
2005
2004
Net income in accordance with IFRS
915
146
883
Minority interests
(16)
(26)
(13)
Net income attributable to the equity holders of the parent
899
120
870
Items increasing (decreasing) net income:
Goodwill
1 2
17
(158)
Other intangible assets
2 (17)
(17)
(26)
Real estate
3 (14)
8
3
Derivative instruments and loans
4 58
67
19
Pensions and other post-employment benefits
5 (36)
(42)
(50)
Non-current assets held for sale and discontinued operations
6 24
(194)
(442)
Investments in joint ventures and associates, net of tax
7 (19)
(24)
(261)
Other
8 (36)
12
76
Income taxes
9 71
(20)
(5)
Minority interest, net of tax
10 (1)
9
5
Dividend on cumulative preferred financing shares
11 42
44
44
Net income (loss) in accordance with US GAAP
973
(20)
75
The effect of the application of US GAAP on equity attributable to the equity holders of the parent as of December 31, 2006
and January 1, 2006 is set out in the table below:
December 31,
January 1,
Note
2006
2006
Group equity in accordance with IFRS
5,270
4,661
Minority interests in accordance with IFRS
(71)
(63)
Equity attributable to the equity holders of the parent
5,199
4,598
Items increasing (decreasing) shareholders' equity:
Goodwill
1
3,305
3,623
Other intangible assets
2
435
503
Real estate
3
(220)
(232)
Derivative instruments and loans
4
70
50
Pensions and other post-employment benefits
5
408
209
Investments in joint ventures and associates, net of tax
7
1,370
1,370
Other
8
21
42
Income taxes
9
(96)
(108)
Minority interest, net of tax
10
(59)
(54)
Shareholders' equity in accordance with US GAAP
10,433
10,001
Bradlees
In 1992, Stop Shop spun off Bradlees as a public company
(the "Bradlees Spin-off"). In connection with the Bradlees
Spin-off, Stop Shop assigned to Bradlees certain commercial
real property leases. Pursuant to a 1995 reorganization of
Bradlees and a subsequent wind-down and liquidation of
Bradlees following a bankruptcy protection filing on
December 26, 2000 (collectively, the "Bradlees
Bankruptcies"), a number of such real property leases
were assumed and assigned to third parties. Pursuant to
applicable law Stop Shop may be contingently liable to
landlords under certain of the leases assigned in connection
with the Bradlees Spin-off and subsequently assumed
and assigned to third parties in connection with the
Bradlees Bankruptcies.
Ahold Annual Report 2006 117
