Skandia: Information on international financial reporting standards (IFRS).

(From Hugin)

Today, 1 February 2005, Skandia will hold a briefing for institutional investors and financial analysts to provide an overview of how Skandia's financial reporting will be impacted by the introduction of International Financial Reporting Standards (IFRS). The presentation will provide background to the development of the IFRS requirements, the changes in accounting principles for Skandia and our current understanding of the impact on formats, opening equity as per 1 January 2004 and net income for the first half of 2004. Currently there are a number of unclear points regarding the final version of certain IFRSs and interpretations of a number of principles. Therefore, this press release and the presentation specify figures that are unaudited and may be changed. Overall effect on shareholders' equity and result The total effect on shareholders' equity of the transition to IFRS is expected to be SEK -2.7 billion as per 1 January 2004, i.e., a reduction of 17%. Shareholders' equity is thereafter calculated at SEK 12.7 billion. The result for the first half of the year is estimated to decrease by SEK 240 million before tax and by SEK 170 million after tax. * The date for recognising earnings from contracts is pushed back further in time, mainly due to the deferral of fees already received. This has no impact on cash flow from the contracts. Initial income and expenses are deferred over the lives of the contracts. * …