SOURCE: Scottish Power PLC

May 24, 2005 02:05 ET

Scottish Power Plc Announces IFRS Transition Statement



Scottish Power plc is required to report its group consolidated financial results for the first time in accordance with International Financial Reporting Standards ("IFRS") from 1 April 2005. The first results to be published under IFRS will be for the quarter ending 30 June 2005 which will be reported in August 2005.

This statement presents and explains the audited consolidated results of the ScottishPower group, restated from UK Generally Accepted Accounting Principles ("GAAP") to IFRS, for the year ended 31 March 2005, and the balance sheet as at 1 April 2004, the group's IFRS transition date. Based on the IFRS standards and interpretations currently in existence, this information will form the basis of the group's IFRS comparative information. The group will take advantage of the US Securities Exchange Commission ("SEC") exemption from providing a second year of IFRS comparatives for the year ending 31 March 2006.

The group has utilised the IFRS 1 'First-time Adoption of International Financial Reporting Standards' exemption not to prepare comparative information in accordance with IAS 32 'Financial Instruments: Disclosure and Presentation' and IAS 39 'Financial Instruments: Recognition and Measurement'. These standards will be applied with effect from 1 April 2005 and details of the group's IAS 32 and IAS 39 opening position as at 1 April 2005 is presented within this statement.

The group will host an IFRS seminar for analysts and institutional investors at 9.30 a.m. on Wednesday 25 May 2005. The presentation slides will be available from that time on the ScottishPower website, and an archived webcast will be available after the event.


The group's IFRS accounting policies as they are applied for the year ended 31 March 2005 have been adopted on the basis of all IFRS issued by the International Accounting Standards Board ("IASB") as of the date of this report and which have either been endorsed by the European Union ("EU") or where there is a reasonable expectation of endorsement by the EU by the time the group prepares its first annual Accounts in accordance with IFRS for the year ending 31 March 2006. In particular, this assumes that the EU will adopt revised IAS 19 (2004) 'Employee Benefits' issued by the IASB in December 2004 and International Financial Reporting Interpretations Committee ("IFRIC") 4 'Determining Whether an Arrangement Contains a Lease'. It also assumes that the EU will not adopt IFRIC 3 'Emission Rights' in its current form.

Due to the continuing work of the IASB, further standards, amendments and interpretations could be applicable for the group's Accounts for the year ending 31 March 2006 as practice is continuing to evolve. Consequently, the group's accounting policies may change prior to the publication of those Accounts. At this preliminary stage, therefore, the full financial effect of reporting under IFRS as it will be applied and reported on in the group's first IFRS financial statements for the year ending 31 March 2006 may be subject to change.

Further Information:
Jennifer Lawton        Head of Investor Relations      0141 636 4527
David Ross             Investor Relations Manager      0141 566 4853
Colin McSeveny         Group Media Relations Manager   0141 636 4515

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