INFORMATION BASED ON US ACCOUNTING PRINCIPLES
The consolidated financial statements of the AEGON Group have been prepared in accordance with International Financial Reporting Standards, as adopted by the European Union (IFRS), which differ in certain respects from those principles generally accepted in the United States (US GAAP). The following information is a summary of the effect on AEGON’s shareholders’ equity and net income of the application of US GAAP, which is included in further detail in the Form 20-F report filed with the Securities and Exchange Commission. The Form 20-F report is available on request, free of charge, and can also be retrieved from the EDGAR database of the SEC at www.sec.gov and via this site.
SUMMARY RECONCILIATION
| RECONCILIATION OF SHAREHOLDERS’ EQUITY AND NET INCOME BASED ON IFRS TO US GAAP |
| |
Shareholders’ equity |
|
|
| |
December 31, |
Net income |
| Amounts in EUR millions |
2005 |
2004 |
2005 |
2004 |
| Amounts in accordance with IFRS: |
19,276 |
14,875 |
2,732 |
2,256 |
| Adjustments for: |
|
|
|
|
| a) |
Goodwill |
2,992 |
2,709 |
— |
(144) |
| b) |
Deferred expenses/VOBA |
235 |
(6) |
226 |
24 |
| c) |
Real estate |
(1,109) |
(896) |
(202) |
(47) |
| d) |
Financial assets |
(77) |
(116) |
(65) |
91 |
| e) |
Derivatives |
87 |
198 |
13 |
(420) |
| f) |
Insurance and investment contracts |
669 |
290 |
(422) |
(17) |
| g) |
Pensions and other post-employment benefits |
1,268 |
1,432 |
(278) |
15 |
| h) |
Other equity instruments |
12 |
62 |
(200) |
(129) |
| i) |
Balance of other items |
(112) |
(89) |
57 |
(58) |
| j) |
Tax |
(328) |
(143) |
228 |
143 |
| Amounts determined in accordance with US GAAP |
22,913 |
18,316 |
|
|
| Income before cumulative effect of accounting changes |
|
|
2,089 |
1,714 |
| Cumulative effect of adopting SOP 03-01, net of tax |
|
|
— |
(207) |
| Cumulative effect of adopting DIG B36, net of tax |
|
|
— |
(77) |
| Cumulative effect of adopting FAS 123, net of tax |
|
|
(5) |
— |
| Net income in accordance with US GAAP |
|
|
2,084 |
1,430 |
| |
|
|
|
|
| Other comprehensive income, net of tax: |
|
|
|
|
| Foreign currency translation adjustments |
|
|
1,987 |
(971) |
| Unrealized gains and (losses) on available-for-sale financial assets |
|
|
840 |
911 |
| Reclassification adjustment for (gains) and losses included in net income |
|
|
(538) |
(526) |
| Net unrealized gains on cash flow hedges |
|
|
97 |
66 |
| Minimum pension liability adjustment |
|
|
30 |
(47) |
| Other comprehensive income/(loss) |
|
|
2,416 |
(567) |
| Comprehensive income in accordance with US GAAP |
|
|
4,500 |
863 |
