Changes in Accounting

Easynet Group is now accounted for as an associate and it will be managed for value in the medium term. As Marconi had previously believed that disposal would occur within 12 months of acquisition, it had been treated as a current asset investment in the H1 2001/02 results.
FRS17 on pensions and other retirement benefits has been adopted in full leading to a £10 million decrease in the amount charged to operating profit.
The new standard on deferred tax, FRS19, has had no significant impact on reported results.