REED ELSEVIER PLC Consolidated statement of total recognised gains and losses For the year ended 31 December 2003 2003 2002 £m £m Profit attributable to ordinary shareholders 169 89 Exchange translation differences  (123) (98) Total recognised gains and losses for the year 46 (9) Consolidated Company 2003 2002 2003 2002 Note £m £m £m £m Profit attributable to ordinary shareholders 169 89 145 136 Equity dividends paid and proposed (152) (143) (152) (143) Issue of ordinary shares, net of expenses 12 16 12 16 Increase in shares held in treasury (10) (1) – – Exchange translation differences  (123) (98) – – Equalisation adjustments (5) – – – Net (decrease)/increase in shareholders’ funds (109) (137) 5 9 Shareholders’ funds at 1 January 1,397 1,534 1,758 1,749 As originally reported 1,407 1,543 1,758 1,749 Prior year adjustment in relation to presentation of shares held in treasury 21 (10) (9) – – Shareholders’ funds at 31 December 1,288 1,397 1,763 1,758 Reconciliation of shareholders’ funds Recognised gains and losses include gains of £53m (2002: losses of £3m) in respect of joint ventures. For the year ended 31 December 2003 80 REED ELSEVIER ANNUAL REPORTS & FINANCIAL STATEMENTS 2003