Transition to international financial reporting standards (IFRS)

The company prepared the opening IFRS balance sheet on the date of the transition to IFRS, 1 January 2004. During its transition to IFRS, Uponor will apply the First-Time Adoption of IFRS, permitting certain exceptions and exemptions to be applied retrospectively to individual standards during the transition period.

The company will prepare its 2005 interim reports using IFRS and release its first IFRS-compliant interim report for the first quarter of 2005 on 27 April 2005.

The purpose of this document is to provide information on major effects of the IFRS adoption on consolidated financial statements, including the comparative data for the financial statements for 2004 and each quarter.

Major impacts of IFRS transition

Uponor has classified divested non-core businesses as discontinued operations under IFRS 5.

On the transition date of 1 January 2004, the company recognised impairment losses on, and reversed revaluations for, the investment property. On 30 November 2004, Uponor divested most of its assets classified as investment property to Grouse Holding Oy, which had a significant effect on the reported earnings per share for discontinued operations.

IFRS adjustments recognised under shareholders' equity on the transition date affected the company's equity and restated profit for 2004, decreasing consolidated shareholders' equity at the end of 2004 by EUR 24.7 million as follows:

- Revaluation reversal: MEUR -4.9
- Impairment losses on property, plant and equipment, and investment property:
MEUR -21.1
- Provisions: MEUR -7.3
- Pension obligations: MEUR -14.2
- Cancellation of goodwill amortisation: MEUR 10.9
- Deferred taxes: MEUR 10.4.
Other adjustments had only minor effects on equity.

All IFRS-compliant restated data are based on unaudited figures. These data are preliminary, which may be subject to any adjustments.

Accounting principles

IFRS comparative data 2004
 

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