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## Shareholders' funds 18 

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Other than in respect of the representation of shares held in treasury (see note 20), the adoption of UK GAAP by Reed Elsevier NV had no impact on group shareholders’ funds as at 1 January 2003 or on the group earnings for the year ended 31 December 2003. The adoption of UK GAAP had the effect of reducing parent company shareholders’ funds as at 1 January 2003 by € 34m and parent company attributable profit for the year ended 31 December 2003 by € 39m compared to the amounts that would have been reported under Dutch GAAP. 

Within paid-in surplus, an amount of € 1,286m (2002: € 1,283m) is free of tax. 

Details of shares held in treasury are provided in note 26 to the combined financial statements. 

A reconciliation between the parent company profit attributable to ordinary shareholders and the group profit attributable to ordinary shareholders presented under the gross equity method is provided below: 2003 

<img src='content_image/76083.jpg'>

A reconciliation between the parent company shareholders’ funds and group shareholders’ funds presented under the gross equity method is provided below: 

<img src='content_image/76085.jpg'>

