Reconciliation of Group IFRS equity to MCEV net worth

30 Jun 2010
£m 		31 Dec 2009
£m
Group net assets attributable to owners of the parent as reported under IFRS 1,682 1,412
Goodwill and other intangibles in accordance with IFRS (after tax) (395) (413)
Value of in-force business in accordance with IFRS (after tax) (1,377) (1,419)
Adjustments to IFRS reserving (120) (98)
Tax adjustments (124) (99)
Revalue listed debt to market value 138 235
Eliminate value of contingent loan asset1 (251) (194)
Fair value adjustments2 (15) (40)
Eliminate pension scheme surplus3 (after tax) (135) (45)
Other adjustments 3 (9)
MCEV net worth attributable to owners of the parent (594) (670)

1 Removal of value attributed to contingent loans issued by holding companies to long-term funds as their expected repayments are captured within the MCEV VIF calculations
2 Investments carried at amortised cost under IFRS are revalued at market value
3 The pension scheme surplus removed is the economic surplus of the PGL scheme and contributions from the life companies in respect of actuarial losses not yet paid into the scheme, net of tax