Average reported earnings have increased by 25% under International Financial Reporting Standards.

This is the main finding of a survey of European companies by UBS, which analysed information from 27 major groups that have so far provided a full reconciliation between local GAAP and IFRS for 2004 earnings and shareholders' equity as at 31 December 2004.

UBS points out that although IFRS brings more comparability, this is limited by the many choices companies have on transition to IFRS and in its subsequent application.

If changes to goodwill amortisation are excluded, the average increase in reported earnings is less than 1%. However, although this represents a modest overall impact, UBS found a wide disparity in the results. The average absolute change in pre-goodwill earnings is 12%.

IFRS reports & accounts, p88.