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IFRS information

Elisa's comparative IFRS information for 2004

As from the beginning of 2005, the Finnish Accounting Standards (FAS) have been replaced by International Financial Reporting Standards (IFRS) in Elisa Corporation's consolidated reporting.  Elisa will disclose its IAS 34 compliant first quarter interim report on Thursday, 28 April 2005.

This release includes the reconciliation of the equity and profit as per transition date and comparative quarterly accounts, as well as the quarterly income statements, balance sheets, segment information and key ratios for 2004. Cumulative comparative information for 2004 is available on Elisa's Web site at There are no substantial differences between the cash flow statement pursuant to the IFRS and FAS standards.

Elisa uses the exemptions allowed by the IFRS 1 standard for the retrospective application of single standards. The most significant exemption concerns business combinations carried out before the transition date. These acquisitions of subsidiaries and associates are consolidated at original cost or consolidation method. The IFRS 3 standard is applied to acquisitions subsequent to 1 January 2004. Impairment tests have been performed, and no impairments are recorded in the balance sheet of the transition date nor are impairments booked in the balance sheet of the subsequently terminated financial period.

An exemption is used for pensions classified as defined benefit plans. According to this, the IAS 19 standard is not applied retrospectively, but at the date of transition the liability of defined benefit plans are recognised in the opening balance sheet and at fair value valid at the time.  Revaluations of non-current assets are reversed. After the adjustment the group's total non-current assets are based on original acquisition costs.

Adopting the IFRS reporting does not cause changes to revenue. The percentage completion method pursuant to IAS 11 has in principal part been used since the beginning of 2003.

The improved EBITDA is mainly due to EUR 11 million finance lease agreements and the effect of the treatment of EUR 11 million defined benefit pensions. The abolishment of goodwill amortisation will reduce depreciation by EUR 45 million. New depreciation of EUR 18 million is made on finance lease assets. Adopting the treatment of financial instruments in compliance with IAS 39 and the interests of the finance lease agreements will not have a significant impact on financial income and expenses. The effect of the transition on the 2004 taxes will not be substantial.

The increase in the balance sheet is mainly due to the reversal of goodwill amortisation, finance lease handling as well as due to derecognising the offsetting of tax assets and liabilities carried out in 2004. Shifting to amortised cost in loan recognition instead of nominal value will reduce the balance sheet by EUR 14 million.  In accordance with IFRS, the minority interest is presented under equity. A GSM network provision of EUR 7 million relating to finance lease agreements under provisions for liabilities and charges will be derecognised. Other provisions of EUR 11 million are grouped under non-current liabilities.

The IFRS figures are unaudited.

Elisa Corporation's Comparative IFRS Information for 2004 (pdf)