Home  Media Press releases 2004
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| 25 October 2004 | 2004-10-25T05:30:00.0000000+01:00 |
| ASTRAZENECA PREPARES FOR ADOPTION OF IAS/IFRS
As part of its preparation for the adoption of International Accounting Standards (IAS)/International Financial Reporting Standards (IFRS), AstraZeneca today made available financial information for the full year 2003 and the first half of 2004, together with quarterly information, prepared in accordance with the new standards. | Currently AstraZeneca reports under UK Generally Accepted Accounting Principles (UK GAAP) and is making IAS/IFRS information available for these periods ahead of the formal adoption of the new standards, from January 1, 2005.
Mr Jon Symonds, Chief Financial Officer of AstraZeneca, said: “Information released today is designed to enable shareholders and the financial community to make comparisons when the new IAS/IFRS guidance is fully introduced from January 1 2005. The overall effect of the new standards on AstraZeneca is modest. The new standards would give an EPS figure for 2003 of $1.76 against a UK GAAP figure of $1.78.”
Summary of Main Changes
| H1 2004 | | FY 2003 | | | UK GAAP | IFRS | UK GAAP | IFRS | | $m | $m | $m | $m | | Operating profit | 2,190 | 2,104 | 4,111 | 4,007 | | Net profit (after Minority Interests) | 1,634 | 1,604 | 3,036 | 3,014 | | EPS | $0.97 | $0.95 | $1.78 | $1.76 | | Net assets | 13,281 | 12,834 | 13,257 | 13,209 |
The most significant elements contributing to the change in financial information for 2003 and 2004 are: - the cessation of goodwill amortisation
- recalculation of the deferred tax asset in relation to profit on intra-group stock
- the inclusion of financial instruments at fair value, and
- the inclusion of a fair value charge of $154m in respect of outstanding share options for 9,000 employees worldwide, mostly in the USA
- inclusion in the balance sheet of all employee benefit liabilities(largely pensions), using similar principles to FRS 17.
This financial information has been prepared on the basis of IFRS’s expected to be available for use at 31st December 2005. These are subject to ongoing review and endorsement by the EU and are therefore still subject to change. We will update our information for any such changes when they are made.
A teleconference for financial analysts will take place at 13:00 BST, with a brief presentation followed by a Q&A session. The dial-in telephone numbers are as follows:
UK (freephone): 0800 559 3272
Europe: +44 (0)20 7984 7576
USA (freephone): 1 866 239 0753
Emergency back up number is: +353 (0)1 478 1010
Journalists may dial in on a listen-in basis only. The telephone number is: +44 (0)20 7784 1020
The restated IAS/IFRS figures and presentation will be available online at www.astrazeneca.com and www.astrazenecaevents.com.
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS
In order to utilise the 'Safe Harbor' provisions of the United States Private Securities Litigation Reform Act of 1995, AstraZeneca is providing the following cautionary statement. This announcement contains forward-looking statements with respect to the financial condition, results of operations and businesses of AstraZeneca. By their nature, forward-looking statements and forecasts involve risk and uncertainty because they relate to events and depend on circumstances that will occur in the future. There are a number of factors that could cause actual results and developments to differ materially from that expressed or implied by these forward-looking statements. These factors include, among other things, the loss or expiration of patents, marketing exclusivity or trade marks; exchange rate fluctuations; the risk that R&D will not yield new products that achieve commercial success; the impact of competition; price controls and price reductions; taxation risks; the risk of substantial product liability claims; the impact of any failure by third parties to supply materials or services; the risk of delay to new product launches; the difficulties of obtaining and maintaining governmental approvals for products; and the risk of environmental liabilities.
Media Enquiries:
Edel McCaffrey, Tel: +44 (0) 207 304 5034
Steve Brown, Tel: +44 (0) 207 304 5033
Investor Relations:
Mina Blair, Tel: +44 (0) 207 304 5084
Jonathan Hunt, Tel: +44 (0) 207 304 5087
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