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 “turnover”?
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?