(solution) Unilever Group is a global company that markets a wide

(solution) Unilever Group is a global company that markets a wide

Unilever Group is a global company that markets a wide variety of products, including Lever® soap, Breyer’s® ice cream, and Hellman’s® mayonnaise. The income statement and statement of comprehensive income for the Dutch company, Unilever Group is shown below. Unilever Group Consolidated Income Statement For the Year Ended December 31, 2009 (in millions of euros) Turnover . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . €39,823 Operating profit. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,020 After (charging)/crediting: Restructuring . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (897) Business disposals, impairments, other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29 Net finance costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (593) Finance income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 75 Finance costs. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (504) Pensions and similar obligations. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (164) Share of net profit/(loss) of joint ventures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 111 Share of net profit/(loss) of associates. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 Other income from non-current investments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 374 Profit before taxation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . € 4,916 Taxation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (1,257) Net profit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . € 3,659 Earnings per share—basic . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . € 1.21 Earnings per share—diluted . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . € 1.17 Consolidated Statement of Comprehensive Income For the Year Ended December 31, 2009 Fair value gains (losses), net of tax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . € 65 Actuarial gains (losses) on pensions, net of tax. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18 Currency retranslation gains (losses), net of tax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 396 Net income (expense) recognized directly into equity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . € 519 Net profit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,659 Total comprehensive income. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . €4,178 a. What do you think is meant by ?oturnover??? b. How does Unilever’s income statement presentation differ significantly from that of Mornin’ Joe? c. How is the total for net finance costs presented differently than would be typically found under U.S. GAAP? d. What are two ways in which other comprehensive income items can be disclosed under IFRS, and how does this differ from U.S. GAAP?