British American Tobacco - Glossary of terms G-N

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Glossary of terms G-N

Helpful financial definitions



GAAP: Generally accepted accounting principles.

Global Drive Brands (GDBs): From 2014 our five leading international cigarette brands - Dunhill, Kent, Lucky Strike, Pall Mall and Rothmans.

Goodwill:  Goodwill represents the excess of the cost of acquisition of a subsidiary, associate or joint venture over the Group’s share of the fair value of identifiable net assets acquired. Goodwill arising on acquisitions is capitalised and is considered to have an indefinite life subject to impairment reviews. Any impairment of goodwill is recognised immediately in the income statement and is not subsequently reversed.

Group: British American Tobacco p.l.c. and all its businesses throughout the world.

Gross turnover: Group turnover before deducting the effects of duty, excise and other taxes. Group revenue is turnover less duty, excise and other taxes.


Headline earnings: Due to the secondary listing of the ordinary shares of British American Tobacco p.l.c. on the main board of the JSE Limited (JSE) in South Africa, the Group is required to present headline earnings per share and diluted headline earnings per share, as alternative measures of earnings per share, calculated in accordance with Circular 2/2013 ‘Headline Earnings’ issued by the South African Institute of Chartered Accountants. 


IFRS: International Financial Reporting Standards as adopted by the European Union, comprising:

  1. International Financial Reporting Standards issued by the International Accounting Standards Board (IASB), and interpretations issued by IFRS Interpretations Committee (IFRIC);
  2. International Accounting Standards originally issued by the International Accounting Standards Committee (IASC), which were subsequently adopted and amended by the IASB, and interpretations originally issued by the IASC’s Standing Interpretations Committee (SIC).

The Group has prepared its annual consolidated financial statements in accordance with International Financial Reporting Standards (IFRS) as adopted by the European Union. 

Impairment loss: The amount by which the carrying amount of an asset exceeds its recoverable amount.

Interest cover: EBITDA excluding the effect of adjusting items divided by net finance costs.

Interim dividend: A dividend paid part way through a company's financial year.


Joint arrangements: Comprise contractual arrangements where two or more parties have joint control and where decisions regarding the relevant activities of the entity require unanimous consent.

Joint operations: Comprise jointly-controlled arrangements where the parties to the arrangement have rights to the underlying assets and obligations for the underlying liabilities relating to the arrangement. The Group accounts for its share of the assets, liabilities, income and expenses of any such arrangement.

Joint ventures: entities comprise jointly-controlled arrangements where the parties to the arrangement have rights to the net assets of the arrangement. They are accounted for using the equity method (like associates).


Net debt: The Group defines net debt as borrowings including related derivatives, less cash and cash equivalents and current available-for-sale investments.

Non-controlling interests: The share of profit after tax and accumulated capital and reserves attributable to shareholders of subsidiaries not wholly directly owned by the Company or indirectly by its subsidiaries.

Non-GAAP measures: In the reporting of financial information, the Group uses certain measures that are not required under IFRS, the generally accepted accounting principles (GAAP) under which the Group reports.  The Group believes that these additional measures, which are used internally, are useful to users of the financial information in helping them understand the underlying business performance. The principal non-GAAP measures which the Group uses are adjusted profit from operations and adjusted diluted earnings per share, which are reconciled to profit from operations and diluted earnings per share.

Number of institutions holding shares: The number of all reporting institutions that are holding shares of this stock.