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EURO CONVERSION 
These statements of consolidated financial information reflect a translation of the Group’s 2002 profit
and loss account and balance sheet, prepared under UK Generally Accepted Accounting Principals (GAAP), using €1.591/£, the
rate in effect at 30 September 2002.
US DOLLAR CONVERSION
These statements of consolidated financial information reflect the translation of the Group’s 2002 profit and
loss account and balance sheet, prepared under UK GAAP, using US$1.573/£, the rate in effect at 30 September 2002.
Consolidated balance sheet (€ conversion)
Consolidated balance sheet (US$ conversion)
Approximate cumulative effect on shareholders’ equity of differences between UK and US GAAP
Summary of differences between UK and US GAAP
The Group’s financial statements are prepared in accordance
with UK GAAP which differs in certain significant respects
from US GAAP. These differences relate principally to
the following items and the approximate effect of the
necessary adjustments is shown in the foregoing tables.
The 2001 US GAAP information is extracted form the Group’s
2001 Form 20-F.
Goodwill and US purchase accounting
Under UK GAAP, for acquisitions arising before 30 September
1998 the Group charged goodwill arising on such business
combinations treated as purchases directly to reserves.
From 1 October 1998 goodwill arising on acquisitions under
UK GAAP has been capitalised as an intangible asset and
is written off over periods of up to 20 years. Under US
GAAP, intangible assets including goodwill, in respect
of business combinations treated as purchases are charged
against income over their estimated lives. Any intangible
assets relating to a business sold in the year is written
off in determining the profit or loss on disposal. In
determining the differences between UK GAAP and US GAAP
shown above, US GAAP has been applied using amortisation
periods in respect of goodwill of up to 40 years.
Ordinary dividends
Under UK GAAP, final Ordinary dividends are provided for
in the fiscal year in respect of which they are recommended
by the Board of Directors for approval by the shareholders.
Under US GAAP, such dividends are not provided for until
approved by the shareholders.
Pension costs
Differences between the UK and US GAAP figures arise from
the requirement to use different actuarial methods and
assumptions and the method of amortising surpluses or
deficits. Under US GAAP, a minimum pension liability is
recorded for the amount by which the plan is under funded,
ignoring projected future salary increases.
Stock compensation
Under UK GAAP the cost of stock options is only recognised
in net income to the extent the options were granted at
a value beneath the market value on the date of grant.
Under US GAAP the Group has elected to measure the cost
of stock options using a fair value based method at the
date of grant and to recognise the charge over the vesting
period.
Investments
Under UK GAAP, decreases in the market value of fixed
asset investments need not be recorded to the extent that
the decrease is considered temporary. Under US GAAP, debit
and equity securities are required to be adjusted to reflect
the underlying market values, with the change in respect
of temporary differences in value being reflected in reserves
and other than temporary differences in the profit and
loss account.
Financial instruments
Under UK GAAP the value of underlying financial instruments
(including forward exchange contracts) is not recorded
in the financial statements to the extent that the financial
instruments are considered hedges. Under US GAAP, all
financial instruments must be recorded on the balance
sheet and carried at their fair value with changes in
fair value charged to the profit and loss account. Derivative
financial instruments embedded within host contracts are
recorded separately in the financial statements at their
fair value.
Acquired film libraries
Under UK GAAP, acquired film libraries are amortised over
a period of up to 40 years. Under US GAAP, acquired film
libraries are amortised over a period of up to 20 years.
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