ZAANDAM, Netherlands, May 17, 2005 (PRIMEZONE) -- Ahold highlights:
-- Opening group equity in accordance with IFRS approximately EUR 1.6 billion lower
-- 2004 net income in accordance with IFRS approximately EUR 1.3 billion higher
-- IFRS Technical Conversion Memo available at www.ahold.com
-- Analyst conference call to be hosted via our website scheduled for 6-7 pm CET today
Ahold today announced it has determined the impact of the conversion from Dutch GAAP to International Financial Reporting Standards (IFRS) for 2004. As announced on March 29, 2005, opening group equity in accordance with IFRS is approximately EUR 1.6 billion lower than in accordance with Dutch GAAP. Net income (loss) for 2004 in accordance with IFRS is approximately EUR 1.3 billion higher than in accordance with Dutch GAAP.
Prior to 2005, we prepared our consolidated financial statements in accordance with Dutch GAAP. From 2005 onwards, we are required to prepare our consolidated financial statements in accordance with IFRS. This change applies to all financial reporting for accounting periods beginning on or after January 1, 2005. We will report our results for the first quarter 2005 which are to be announced on June 14, 2005 in accordance with IFRS. Financial statements for 2005, inclusive 2004 comparatives, in accordance with IFRS will be included in our 2005 annual report which will be issued in 2006. The 2005 annual report also will contain the reconciliation of net income and shareholders' equity to US GAAP as required by the U.S. Securities and Exchange Commission, which we will only provide on an annual basis.
We have prepared the 2004 IFRS information in accordance with IFRS as it is expected to be in force as of December 31, 2005. IFRS is subject to ongoing review and endorsement by the European Union and possible amendment by interpretative guidance from the International Accounting Standards Board (IASB) and, therefore, may be subject to change before the 2005 year-end.
Additional information on the conversion to IFRS and how our reported financial position and results were affected is provided in the detailed memorandum regarding the technical aspects of the conversion to IFRS that is included on our website at www.ahold.com. Further information also will be provided in the analyst conference call which will be hosted via our website and is scheduled for 6-7 pm CET today, the slides for which are also available at www.ahold.com.
The numbers presented in this press release are preliminary and unaudited.
Please open the link in order to view the full press release including table regarding IFRS: http://hugin.info/130711/R/994590/150659.pdf.
Disclaimer
Certain statements in this press release are "forward-looking statements" within the meaning of U.S. federal securities laws. These forward-looking statements include, but are not limited to, statements regarding our plans to prepare our consolidated financial statements and to report results in accordance with IFRS, the expected date when our Q1 2005 results will be released and the expectation that IFRS as used by us in preparing our financial results will continue to be in force as of December 31, 2005. These forward-looking statements are subject to risks, uncertainties and other factors that could cause actual results to differ materially from future results expressed or implied by the forward-looking statements. Important factors that could cause actual results to differ materially from the information set forth in these forward-looking statements include, but are not limited to, unanticipated delays in the determination of the Q1 2005 results and the publication thereof, changes to IFRS or the application or interpretation thereof prior to December 31, 2005, as a result of the review and endorsement by the EU or amendment by the IASB of interpretative guidance and other factors some of which are discussed in our public filings. Many of these factors are beyond our ability to control or predict. Given these uncertainties, readers are cautioned not to place undue reliance on the forward-looking statements, which only speak as of the date of this press release. We do not undertake any obligation to release publicly any revisions to these forward-looking statements to reflect events or circumstances after the date of this press release or to reflect the occurrence of unanticipated events or circumstances, except as may be required under applicable securities laws. Outside The Netherlands, Koninklijke Ahold N.V., being its registered name, presents itself under the name of "Royal Ahold" or simply "Ahold."