Effects of transition to IFRS

Schibsted ASA (SCH) , Published 13/04/2005 11:36:59

Enclosed is Schibsted’s statement regarding effects of transition to IFRS in the consolidated financial statements with effect from 1st quarter 2005. The statement includes quantitative information regarding changes in equity following the transition and restated income statement for 2004 in accordance with IFRS. The significant actual changes in equity and net profit are related to the items disclosed in previous information regarding effects of the transition to IFRS.
 
Consolidated equity as per January 1, 2004 is reduced by NOK 59 million compared to previously reported equity as per December 31, 2003 as a consequence of the transition. The changes are mainly related to dividends and change in pension liabilities. Similarly, consolidated equity as per December 31, 2004 increases by NOK 35 million compared to previously reported equity at that date. The changes are mainly related to dividends, pension liabilities and carrying value of goodwill.
 
Net profit in 2004 increases from previously reported NOK 241 million to NOK 313 million in restated income statement in accordance with IFRS for 2004. The change is mainly related to reversal of amortisation of goodwill.
 
In restated quarterly income statements for 2004 in accordance with IFRS is the allocation of vacation pay changed. Operating profit for the year is not affected, but the operating profit in the 2nd quarter 2004 is reduced by NOK 62 million with a corresponding improvement of NOK 62 million in the 3rd quarter 2004.
 
Income from associated companies which are considered to be strategic investments related to operations, has under NGAAP been presented as a financial item, but will under IFRS be included in operating profit.
 
Contact person:
Trond Berger, tel. +47 23 10 66 00 / +47 23 10 66 95
 
 
 
Oslo, April 13, 2005
Schibsted ASA
 
 
Trond Berger
CFO and Executive Vice President

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