IFRS reports & accounts - AstraZeneca publishes pro forma - IFRS financial statements

AstraZeneca has published the most comprehensive IFRS disclosures to date for a UK company by restating its financial information under IFRS for its year ended 31 December 2003.

The company discloses that the financial information has been prepared under IFRS but, in respect of

IAS 39, Financial Instruments: Recognition and Measurement, the company takes into consideration the proposed EU provisions and complies with amended IAS 39. Moreover, in respect of IAS 19, Employee Benefits, the company assumes that the exposure draft allowing actuarial gains and losses to be recognised in full through reserves, will be incorporated into IFRS and endorsed by the EU.

The restated results show a decreased eps of $0.02 and a decrease in net assets of $48m (£25.3m) to $13.2bn.

Following the restatement the company notes the most significant elements contributing to the change in financial information: inclusion of a fair value charge in respect of outstanding employee share options; cessation of goodwill amortisation; recalculation of deferred tax asset in relation to unrealised profit on intra-group sales; inclusion of financial instruments at fair value; and recognition of employee benefit (largely pensions) liabilities together with associated pension fund assets.

The restated financial information published by AstraZeneca is the most comprehensive practical example to date of the effect on a UK company of adopting IFRS and its authenticity is validated by the company's auditors which have issued a separate audit report. The company has set a new benchmark for IFRS disclosure and it remains to be seen if other companies are willing to follow suit.

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