Note 35
Differences in the impairment of assets held for sale result from differences in the carrying amounts of these assets between
IFRS and US GAAP. These differences mainly relate to goodwill and the cumulative currency translation adjustment, which is
included in the carrying amounts of assets held for sale that are tested for impairment under US GAAP, when the Company
has committed to a plan to dispose of assets that will cause the cumulative translation adjustment to be included in net
income. The Company recorded an additional impairment loss under US GAAP of EUR 158 in 2004 (2005 and 2006: nil) as
these assets or disposal groups had a higher carrying amount under US GAAP compared to IFRS. Unrealized cumulative
translation adjustments of EUR 185 in 2004 (2005 and 2006: nil) have been taken into account in determining the carrying
amount while performing the impairment test of non-current assets or disposal groups held for sale under US GAAP.
During 2006, 2005 and 2004 Ahold completed several divestments. Under IFRS, the gains and losses on divestments can
differ significantly from those under US GAAP, due to differences in the carrying amount upon disposal and differences in the
cumulative currency translation adjustment balances that have been included in net income upon disposal. Cumulative
currency translation adjustments under US GAAP were significantly different compared to IFRS as a result of the transitional
provisions of IFRS, which allowed cumulative currency translation balances to be set to zero as of December 29, 2003.
6. Non-current assets held for sale and discontinued operations
Classification as held for sale and discontinued operations
Certain divestments and planned divestments meet the definition of a discontinued operation under US GAAP, but not under
IFRS. Under IFRS, the divestment must represent a separate major line of business or geographical area of operations,
whereas under US GAAP, a component of an entity can be classified as a discontinued operation. In 2006, 2005 and 2004
the following divestments or intended divestments qualified as discontinued operations under US GAAP, but not under IFRS:
Entity (component)
Arena
Status
Qualified as of
Wilson Farms and SugarCreek
Giant-Carlisle/Tops Arena
Divested 2005
Q42003
Williams Humbert
Other retail
Divested 2005
Q4 2004
Tops Adirondacks
Giant-Carlisle/Tops Arena
Divested 2006
Q12005
Sofco
U.S. Foodservice
Divested 2005
Q2 2005
Shopping center Czech Republic
Central Europe Arena
Divested 2006
Q2 2005
Tops Northeast Ohio
Giant-Carlisle/Tops Arena
Partially divested/Held for sale
Q2 2006
Furthermore, investments in joint ventures and associates cannot qualify as assets held for sale or discontinued operations
under US GAAP. Under IFRS, investments in joint ventures and associates accounted for under the equity method can qualify
as assets held for sale and discontinued operations. In 2006, Ahold's 49 percent stake in JMR is retrospectively classified as
held for sale and discontinued operation under IFRS but not under US GAAP. In 2005, Ahold completed the sale of its
50 percent stake in Paiz Ahold. Consequently, Paiz Ahold was classified as held for sale and discontinued operation under
IFRS retrospectively in 2005, but not under US GAAP.
Impairment of assets held for sale
Divestments of assets held for sale
2006
2005
2004
Income from discontinued operations under IFRS
79
211
222
Differences in operational results
(80)
(26)
(289)
Differences in carrying amount upon divestments
19
107
513
Differences in cumulative currency translation adjustments
5
(155)
(704)
Results JMR and Paiz Ahold (discontinued operations under IFRS)
(29)
(183)
(54)
Loss from discontinued operations under US GAAP
(6)
(46)
(312)
Ahold Annual Report 2006 121
