Press release

O2 International Financial Reporting Standards Download PDF

O2 International Financial Reporting Standards Download PDF presentation

O2 plc is required, under EU Regulations, to adopt International Financial Reporting Standards ("IFRS") as its primary basis of accounting for the year ending 31 March 2006. IFRS has replaced UK Generally Accepted Accounting Principles ("UK GAAP"), under which O2 has prepared and presented its financial statements up to 31 March 2005.

The principal effects on O2's reported financial information arise from the following differences in accounting under IFRS compared with UK GAAP:

• recognition of mobile number portability ("MNP") revenue on a net basis;
• cessation of goodwill amortisation;
• recognition of all employee benefits, principally pension obligations;
• inclusion of a charge for employee share schemes based on fair value;
• recognition of certain financial instruments at fair value;
• recognition of certain deferred tax liabilities;
• de-recognition of dividends not declared at period end.

A full description of the differences between UK GAAP and IFRS, and the impact on O2 plc's primary financial information for the 12 months ended 31 March 2005 and 6 months ended 30 September 2004, and on the transition balance sheet at 1 April 2004, is presented in the following sections.

Back to press release list