TeliaSonera ends goodwill amortization in accordance with a new accounting standard
TeliaSonera ends goodwill amortization in accordance with a new
On March 31, 2004, the IAS Board published a new standard IFRS 3
"Business Combinations." TeliaSonera's Board of Directors has decided
that TeliaSonera will adopt the new business combinations standard as of
January 1, 2004.
Adoption of the new standard includes, among other things, that goodwill
and other intangible assets with indefinite useful life are not
amortized after December 31, 2003. Instead, these assets are tested for
impairment at least annually.
TeliaSonera has applied IFRS/IAS since1999.
The new accounting standard affects TeliaSonera's January-March 2004
results as shown in the following table. Prior periods are not restated.
As reported Restated
SEK million, except on April 28, 2004 for IFRS 3
earnings per share
Depreciation, amortization -3,823 -2,993
Income from associated 354 585
Operating income 4,122 5,183
Net income 2,344 3,405
Earnings per share (basic 0.50 0.73
The detailed impact of the new accounting standard on TeliaSonera's
reporting segments in January-March 2004 is available on
www.teliasonera.com under Investor Relations, comparable historical
figures. There you will also find specifications of goodwill
amortization during previous years.
For further information journalists can contact:
Kim Ignatius, CFO, TeliaSonera AB, +46-(0)8-713 58 30
Statements made in the press release relating to future status or
circumstances, including future performance and other trend projections
are forward-looking statements. By their nature, forward-looking
statements involve risk and uncertainty because they relate to events
and depend on circumstances that will occur in the future. There can be
no assurance that actual results will not differ materially from those
expressed or implied by these forward-looking statements due to many
factors, many of which are outside the control of TeliaSonera.
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