ANNUAL REPORT 2004 - Luxottica Group
ANNUAL REPORT 2004 - Luxottica Group
ANNUAL REPORT 2004 - Luxottica Group
You also want an ePaper? Increase the reach of your titles
YUMPU automatically turns print PDFs into web optimized ePapers that Google loves.
<strong>ANNUAL</strong> <strong>REPORT</strong> <strong>2004</strong><br />
RECONCILIATION OF THE ITALIAN<br />
AND U.S. GAAP CONSOLIDATED<br />
FINANCIAL STATEMENTS<br />
<strong>Luxottica</strong> <strong>Group</strong> prepared the consolidated financial<br />
statements contained in this report in accordance<br />
with generally accepted U.S. accounting principles<br />
known as U.S. GAAP. <strong>Luxottica</strong> <strong>Group</strong>, through the<br />
approval of CONSOB (Report No. 27021 of April 7,<br />
2000), decided that preparing its financial and<br />
economic statements in accordance with U.S. GAAP,<br />
rather than the corresponding Italian GAAP, was<br />
opportune for the following reasons:<br />
- it maintains continuity and consistency with the<br />
financial information reported in previous years,<br />
which were prepared under U.S. GAAP, facilitating<br />
their comparison;<br />
- it maintains continuity and consistency in the<br />
<strong>Group</strong>’s consolidated financial statements and<br />
those of its U.S. subsidiaries, (prepared under U.S.<br />
GAAP), which account for over 50% of the <strong>Group</strong>’s<br />
results.<br />
<strong>Luxottica</strong> <strong>Group</strong> makes available the consolidated<br />
financial statements prepared in accordance with<br />
Italian GAAP, in compliance with the Italian laws in<br />
72<br />
force regarding companies listed on the MTA. In the<br />
table on the following page, the differences between<br />
the two consolidated financial statements are<br />
expanded upon, with reference to the statements of<br />
consolidated income for fiscal year <strong>2004</strong>.<br />
The primary difference regards the amortization<br />
period for goodwill and the brands, regarding the<br />
U.S. Shoe acquisition in 1995. The amortization<br />
period, reported by the U.S. subsidiary, varies from<br />
ten to 25 years according to U.S. GAAP measures,<br />
and from five to ten years according to Italian GAAP<br />
measures.<br />
Furthermore, in compliance with EEC regulations<br />
(EEC Regulation No. 1606/2002), beginning with the<br />
financial statements for fiscal year 2005, European<br />
companies listed on the Stock Exchange must<br />
prepare their consolidated financial statements in<br />
accordance with international accounting principles<br />
(IAS/IFRS). <strong>Luxottica</strong> <strong>Group</strong> will comply with this<br />
ordinance beginning with the 2005 half-year report.