Global consumer packaging group Rexam hosted an analyst seminar on 9 December 2004 to outline the impact on the group“s financial statements of the adoption of International Financial Reporting Stand…
Global consumer packaging group Rexam hosted an analyst seminar on 9 December 2004 to outline the impact on the group“s financial statements of the adoption of International Financial Reporting Standards (IFRS). These take effect from 1 January 2005 and will include comparatives for 2004. The presentation focused on the key accounting changes arising from the introduction of IFRS and gave an illustration, based on the group“s 2003 published results, of the impact of those changes on the group. The presentation and the illustration of the impact of IFRS on the group“s financial statements have not been audited and were prepared solely to demonstrate the estimated effect of IFRS on the group“s financial statements. The illustration was prepared on the basis that all IFRS, except for IAS 39 “Financial Instruments: Recognition of Measurement“, are applied and ignores certain first time adoption transition rules as set out in IFRS 1. Since IAS 39 is dependent upon prevailing market values, any adjustments made in 2003 would not necessarily reflect those required in future periods. The most significant factors impacting the group“s financial statements include the cessation of goodwill amortisation, deferred tax asset recognition on acquired tax losses, share-based payment and the treatment of preference shares. For the year ended 31 December 2003, the estimated impact of adopting IFRS (excluding IAS 39) on underlying earnings per share, including retirement benefits net finance cost, shows an IFRS adjusted underlying EPS of GBP 0.326 compared with GBP 0.338 reported under UK Generally Accepted Accounted Principles (GAAP). On a statutory basis basic EPS would be GBP 0.359 compared with a loss per share of GBP 0.095 under UK GAAP. Rexam intends to announce its restated results under IFRS for the six months ended 30 June 2004 and the year ended 31 December 2004 early in the 2Q of 2005. The detailed programme to effect a smooth transition to IFRS is well advanced and has addressed not only the financial effect but also the impact on systems, people and processes, according to Rexam.