2005 Annual report - Virbac

91
Transition to IFRS
Breakdown of effects of conversion to IFRS on the income statement for the year ended 31 December
2004
Standard
Effects of conversion
a IAS 18 Reclassifications:
- discounts given have been reclassified as a deduction from sales
- certain charges have been reclassified as a deduction from sales since they were incurred
in connection with the sales policy of the subsidiaries concerned.
IAS 18
The adoption of IAS 18 has resulted in cut-off on revenue recognition in respect of sales
until the effective transfer of the risks and rewards. At the year end closing this difference is not
material, given the fact that deliveries stop during the end-of-year celebrations at some
subsidiaries.
b IAS 2 The cut-off on revenue recognition (IAS 18) has resulted in an increase in closing inventories.
c IAS 18 Reclassifications: corresponding to the charges that have been reclassified as a deduction from
sales.
IAS 17
IAS 38
Certain leases have been restated in accordance with the principles applicable to finance leases.
Expenses in respect of internally-developed trademarks may no longer be capitalised.
d IAS 1 Reclassifications: change in the provision for employee benefits
(pensions, post-employment benefits, etc.).
e IAS 1 Reclassifications: change in provisions classified as non-recurring
(excluding employee benefits).
IAS 16
Impact of revision of depreciation periods applied to property, plant and equipment.
f IAS 1 Reclassifications: discounts granted are presented as a deduction from sales.
IAS 32 & 39
Impact of restatements at fair value of financial assets and liabilities.
g IAS 12 Impact of tax on IFRS restatements.
h IFRS 3 Goodwill no longer amortised.
i
Impact on minority interests of IFRS restatements.