IFRS-related changes in FöreningsSparbanken’s financial accounts

FöreningsSparbanken’s forthcoming interim report for the first quarter of 2005 has been prepared according to the International Financial Reporting Standards (IFRS) adopted by the EU. These standards are issued by the International Accounting Standards Board (IASB) and become mandatory for listed companies as they are approved by the EU. The introduction of the IFRS principles in the interim report has necessitated the restatement of comparable profit and balance sheet information for 2004, as illustrated by the accompanying tables. New valuation rules for goodwill (IFRS 3) and the inclusion of minority interests in shareholders’ equity and profit have affected the reported figures for 2004. Reported profit for the full-year 2004 increased from SEK 8,592 M to SEK 9,949 M, due in part to the inclusion of minority profits of SEK 756 M, and in part to IFRS 3 rules for valuation of goodwill, with a net positive effect of SEK 601 M. The new valuation of goodwill also resulted in the profit allocated to minority shareholders increasing by SEK 36 M to SEK 792 M. Shareholders’ profit increased by SEK 565 M to SEK 9,157 M. Due to these changes, shareholders’ equity in 2004 rose by SEK 3,733 M, from SEK 43,624 M to SEK 47,357 M. New valuation rules for financial instruments also apply from 2005. Adjusted shareholders’ equity, SEK 47,357 M, is reduced by SEK 788 M due to the new valuation rules for financial instruments. As a result, the opening shareholders’ equity balance for 2005 is SEK 46,569 M. The new rules have also necessitated changes in the classification of income statement and balance sheet items. The income statement item “net profit on financial items at fair value” contains changes in the value of financial instruments and stock dividends as well as interest paid on financial assets and financial liabilities categorized as trading. A separate income statement line, “net insurance”, containing the net of insurance premium income and insurance provisions, has also been added. The “share of profit/loss of associated companies”, calculated according to the equity method, will henceforth be reported among the other income categories. “Profit from the period from discontinued operations” are reported net on a separate line. This is where the after-tax profit in FI-Holding for 2004 is reported. The earlier accounting practice of publishing separate operational and statutory income statements ceases with the transition to IFRS rules. For further information: Christer Westholm, Head of Accounting, FöreningsSparbanken, phone: +46-8-585 918 85 Henrik Bonde, Accounting Specialist, FöreningsSparbanken, phone: +46-8-585 935 67 Jonas Blomberg, Head of Investor Relation, FöreningsSparbanken, phone: +46-8-585 933 22