2005 IFRS Information

Diageo PLC
09 November 2005

                                                                 9 November 2005


                             2005 IFRS Information

At its preliminary results in September 2005 Diageo issued supplementary
schedules giving information in respect of its transition to financial reporting
in accordance with International Financial Reporting Standards (IFRS).  This
data included unaudited restated financial information prepared in accordance
with IFRS in relation to the year ended 30 June 2005 (the 2005 IFRS
Information).


The International Accounting Standards Board, at its meeting in October 2005,
considered a technical correction to eliminate an inconsistency in one of the
standards.  IFRS requires that deferred tax liabilities should be recognised in
respect of separable intangibles where there is a difference between the
accounting and tax values for these assets.  Normally recognition of this
deferred tax liability would result in a corresponding increase in goodwill.
Diageo reflected this treatment in the 2005 IFRS Information issued on 1
September 2005 in respect of deferred tax liabilities of £438 million relating
to intangibles acquired in business combinations prior to the IFRS transition
date (1 July 2004). This was also the treatment considered as a technical
correction by the IASB.  However, following the decision by the IASB not to
propose a  technical correction, the provisions of IFRS1 applicable to pre
transition date business combinations require that deferred tax liabilities
existing at the transition date in respect of these assets should reduce equity
by an equivalent amount and not increase goodwill.


Under UK GAAP, net assets at 1 July 2004, 31 December 2004 and 30 June 2005 were
£4,183 million, £4,284 million and £3,834 million respectively.  Under IFRS, net
assets at 1 July 2004, 31 December 2004 and 30 June 2005 were £5,229 million,
£4,997 million and £4,626 million respectively after making the above
adjustment. This compares to £5,667 million, £5,435 million and £5,074 million,
respectively disclosed in the 2005 IFRS information issued on 1 September 2005.
This adjustment has no impact on the IFRS income statement or cash flows.
Updated IFRS financial information is attached. The IFRS financial information
and reconciliations with UK GAAP are available at www.diageo.com.



As described in the 2005 IFRS Information published on 1 September, IFRS are
subject to ongoing review and endorsement by the EU and possible amendment by
interpretative guidance from the International Accounting Standards Board (IASB)
and are therefore still subject to change.  Diageo's IFRS information will be
updated as necessary for any such changes, should they occur.



Diageo is required to present its first financial statements in accordance with
IFRS in respect of the year ending 30 June 2006.  The group will also present
its interim financial information for the six months ending 31 December 2005 in
accordance with IFRS.



                                     -ends-



Contacts:


Investor Relations:


Catherine James [phone]  [e-mail]


Media Relations:


Isabelle Thomas [phone] [e-mail]




Notes to Editor:



Diageo is the world's leading premium drinks business. With its global vision,
and local marketing focus, Diageo brings to consumers an outstanding collection
of beverage alcohol brands across the spirits, wine and beer categories
including Smirnoff, Guinness, Johnnie Walker, Baileys, J&B, Cuervo, Captain
Morgan and Tanqueray, and Beaulieu Vineyard and Sterling Vineyards wines. Diageo
trades in some 180 countries around the world and is listed on both the New York
Stock Exchange (DEO) and the London Stock Exchange (DGE). For more information
about Diageo, its people, brands and performance, visit us at www.diageo.com




SUPPLEMENTAL SCHEDULES RE IFRS ADOPTION



Information relating to the restatement of the International Financial Reporting
Standards (IFRS)



Introduction



Diageo formerly prepared its primary financial statements under UK generally
accepted accounting principles (UK GAAP).  The group is now required to prepare
its consolidated financial statements in accordance with International
Accounting Standards (IAS) and International Financial Reporting Standards as
adopted by the European Union (EU).  Diageo's first IFRS results will be for the
six months ending 31 December 2005 and the year ending 30 June 2006.  Those
financial statements will present comparative information for the year ended 30
June 2005 prepared under IFRS.  This involves preparation of an opening IFRS
balance sheet at 1 July 2004, which is the group's date of transition to IFRS
reporting.





Basis of preparation



The unaudited restated financial information has been prepared in accordance
with IFRS standards applicable at 30 June 2005.  These are subject to ongoing
review and endorsement by the EU or possible amendment by interpretative
guidance from the International Accounting Standards Board (IASB) and are
therefore still subject to change.  The restated information will be updated as
necessary for any such changes, should they occur.



Certain amounts in these tables have been restated from the amounts published on
1 September 2005 as described on page 2.








Unaudited consolidated balance sheet - restated under IFRS


                                                        30 June 2005      31 December 2004             1 July 2004
                                                         (restated*)           (restated*)             (restated*)
                                                £ million  £ million £ million  £ million   £ million   £ million

Non-current assets
Intangible assets                                   4,392               4,050                   4,104
Property, plant and equipment                       1,936               1,794                   1,815
Biological assets                                      14                   6                      13
Investments in associates                           1,261               1,308                   1,188
Other investments                                     719               1,048                   2,184
Post employment benefit assets                         12                  10                      11
Deferred tax assets                                   778                 955                   1,137
Trade and other receivables                            68                 116                     151
                                                               9,180                9,287                   10,603

Current assets
Inventories                                         2,347               2,245                   2,192
Trade and other receivables                         1,607               2,114                   1,402
Cash and cash equivalents                             787               1,082                     742
                                                               4,741                5,441                   4,336
Total assets                                                  13,921               14,728                  14,939
Current liabilities
Borrowings and bank overdrafts                       (869)             (2,109)                 (2,001)
Trade and other payables                           (1,912)             (2,107)                 (1,705)
Corporate tax payable                                (746)               (795)                   (803)
Provisions                                            (88)               (173)                   (138)
                                                             (3,615)               (5,184)                 (4,647)
Non-current liabilities
Borrowings                                         (3,677)             (2,911)                 (3,316)
Other payables                                        (95)                (60)                   (106)
Deferred tax liabilities                             (298)               (387)                   (329)
Post employment benefit liabilities                (1,306)             (1,056)                 (1,128)
Provisions                                           (304)               (133)                   (184)
                                                             (5,680)               (4,547)                 (5,063)
Total liabilities                                            (9,295)               (9,731)                 (9,710)
Net assets                                                    4,626                 4,997                   5,229

Equity
Called up share capital                               883                 883                     885
Share premium                                       1,337               1,334                   1,331
Treasury and own shares                              (987)               (674)                   (331)
Other reserves                                      3,060               3,060                   3,058
Retained earnings/(deficit)                           166                236
                                                                                                 (181)
Equity attributable to equity shareholders of
the company
                                                              4,459                 4,839                   4,762
Minority interests                                              167                   158                     467
Total equity                                                  4,626                  4,997                  5,229



*Intangible assets (goodwill), total assets,  net assets, retained earnings,
equity attributable to equity shareholders and total equity at 30 June 2005 have
each been reduced by £448 million (31 December 2004 - £438 million; 30 June 2004
- £438 million) compared with information published on 1 September 2005, to
reflect the recognition of deferred tax liabilities on intangibles existing at
the transition date as an adjustment to retained earnings rather than as an
increase to goodwill, in accordance with IFRS 1.




Unaudited consolidated statement of recognised income and expense - restated
under IFRS


                                                                             Year ended             Six months ended
                                                                           30 June 2005             31 December 2004
                                                                            (restated*)
                                                                              £ million                    £ million
Net income recognised directly in equity
Exchange adjustments
  -  group                                                                          85                          (19)
  -  associates                                                                     21                            54
Actuarial losses on post employment plans                                         (205)                            -

Profit for the period
  -  group                                                                        1,288                          904
  -  associates                                                                     121                           71


Total recognised income and expense for the period                               1,310                         1,010

Attributable to                                                                  1,250                           982
  -  equity shareholders                                                            60                            28
  -  minority interests                                                          1,310                         1,010



*Exchange adjustments - group, total recognised income and expense for the
period and amount attributable to - equity shareholders have been reduced by £10
million, representing the exchange effect of the correction described on page 2.






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