Press Releases and Statements
Transition of the Benetton Group to IFRS for the 2004 full year and First Half Consolidated Financial Statements
Minimal impact on the net financial position and shareholders’ equity. Revised net income 2004 down around 14 million euro
Ponzano, 7 September 2005 – The Benetton Group has reclassified its consolidated financial statements relative to the first half of 2004 (to June 30, 2004) and the year 2004 (to December 31, 2004) as required by the International Financial Reporting Standards (IFRS). The Benetton Group will prepare its consolidated financial statements in accordance with IFRS principles as from the 2005 half year. The parent company Benetton Group S.p.A. will adopt IFRS principles as from the 2006 financial statements.
The main differences between Italian and IFRS accounting principles in the consolidated results for the first half of 2004 and the 2004 full year are shown below.
Consolidated statement of income
Annual revenues are affected by the application of IAS 18, increasing by around 18 million euro due to the consolidation of commercial activities in South Korea at retail sales values.
EBIT in accordance with IFRS rules adopted by the Group will now include extraordinary income and expenses, reclassified to operating categories.
Net income for the 2004 financial year is affected in particular by the IFRS principles listed below:
Consolidated balance sheet
Following application of IFRS, total shareholders’ equity at June 30, 2004 reduces by 9 million euro (1,170 million) and by 24 million euro at December 31, 2004 (1,213 million).
The net financial position increases by one million euro at June 30, 2004 (568 million) and by 10 million euro at December 31, 2004 (441 million).
The management will illustrate the reclassification of consolidated financial statement values relative to 2004 in a conference call tomorrow September 8 at 10:00 a.m.
To access the conference call dial +39 06 33485042 (www.benettongroup.com/investors)
The Benetton Group will present the results for the first half-year 2005 on September 21, 2005.
For further information: