Michelin couv courteGB

Pursuant to:
• European Regulation 1606/2002 of July 19, 2002,
• The CESR (Committee of European Securities Regulators)
recommendation of December 30, 2003,
• AMF (Autorité des Marchés Financiers – French securities
regulator) recommendations of February 10, 2004 and
July 2, 2004,
• CNC (Conseil National de la Comptabilité – French accounting
standards board) recommendation no. 2004-R-02 of
October 27, 2004,
Michelin Group sets out hereafter the key information relating
to the adoption of IFRS in 2005.
1. Project management
Michelin Group set up a dedicated task force in the first half of
2002 to prepare for and manage the transition to IFRS.
Operating under the auspices of the Finance Department, the
task force has since carried out a review of the standards, done
impact studies, made changes to the IT systems and the training
of personnel concerned in order to be ready to prepare monthly
IFRS consolidations from January 1, 2004.
The Annual Report 2002 included an update on the status of
the project at that time.
The Annual Report 2003 included:
• A fresh update on the status of the work being carried out by
the Group,
• A description and a calculation of the expected major impact
of the switch with regard to employee benefits.
The work carried out by the task force was presented to the
Managing Partners and the Audit Committee, and reviewed by
Transition
to International
Financial Accounting
Standards
the Group’s auditors, resulting in the publication, on January 20
last, of a press release and a guide to methodology, relating to
the description and quantification of the impact of this switch
on the consolidated balance sheet at January 1, 2004 and the
statement of income of June 30, 2004.
2. Rules for
the application
of IFRS standards
2.1. General principles
The 2004 restated consolidated accounts were prepared
pursuant to the IAS/IFRS accounting basis effective for the 2005
financial year and in particular pursuant to the provisions of IFRS 1
regarding the first-time application of all IAS/IFRS standards.
The effect of changing policies was allocated to Shareholders’
equity at the date of transition, i.e. January 1, 2004 (opening
date of first comparative period).
In addition, pursuant to the provisions prescribed by the IASB,
Michelin Group elected to apply IAS 32 and IAS 39 on financial
instruments from January 1, 2005. As a result, in 2004, the financial
instruments were measured and presented pursuant to the
rules usually employed by the Group.
2.2. Rules for the application of IFRS 1
The general principle underlying IFRS 1 is the retrospective
application of all standards. Nevertheless, it lays down some rules
for prospective application and provides for certain options.