Transition to International Financial Reporting Standards September 2005

1
Transition to International Financial Reporting
StandardsSeptember 2005
2
Contents

• Page
• Introduction 3
• Basis of preparation 4
• First time adoption choices (IFRS 1) 5
• Impacted on reported earnings 7
• Appendices
• Restated consolidated Income Statement
• year ended 31 March 2005 10
• six months ended 30 September 2005 11
• Restated consolidated Balance Sheets as at
• 1 April 2004 12
• 30 September 2004 and 13
• 31 March 2005. 14
• Notes on UK GAAP to IFRS adjustments 15

3
Introduction

• The year ending March 2006 will be the first year
  of mandatory reporting under International
  Financial Reporting Standards (IFRS).
• This presentation includes restatement of the
  Groups previously reported performance under UK
  GAAP and includes
• Group consolidated income statement for the six
  months ended 30 September 2004 and the year ended
  31 March 2005
• Group consolidated balance sheet at 1 April 2004,
  the date of transition and
• Group consolidated balance sheet at 30 September
  2004 and 31 March 2005.
• The restated financial information has been
  examined by Deloitte Touche LLP. Their audit
  and review reports together with the restated
  financial information and associated accounting
  policies are also provided on our website at
  www.kcom.com/investorrelations.

4
Basis of preparation

• The financial information presented for the Group
  has been prepared in accordance with all IFRSs
  and their interpretations adopted by the
  International Accounting Standards Boards (IASB).
• The following standards have the most significant
  impact on the Group
• IFRS 2 Share Based Payments
• IFRS 3 Business Combinations and Goodwill
• IAS 19 Employee Benefits (final salary
  pensions)
• IAS 39 Financial Instruments
• IAS 10 Events after the Balance Sheet Date
  (recognition of Dividends)
• The principal accounting policies, as amended for
  IFRS, are presented alongside the restated
  financial information as provided on our website.
• IFRS1 (first time adoption of IFRS) will be
  applied to the financial statements for the year
  ended 31 March 2006 and the relevant comparative
  financial information. The first time adoption
  choices are set out on pages 5 and 6.

5
First Time Adoption Choices
6
First Time Adoption Choices
7
Impact on reported earnings
8
Impact on reported earnings
9
Appendices
10
2005 reported results - restated
11
2004 interim results - restated
12
Balance sheet at 1 April 2004
13
Balance sheet at 30 September 2004
14
Balance sheet at 31 March 2005
15
Notes to UK GAAP to IFRS adjustments
16
Notes to UK GAAP to IFRS adjustments