|Final accounting principles at adoption of IFRS
(Oslo, 1. March 2006) EDB Business Partner has in connection with the implementation of IFRS as new accounting standard applied a USGAAP approach for recognition of revenue from software licenses. After several assessments, the Company has concluded that the former applied principle according to Norwegian GAAP is acceptable within the IFRS and that this approach is in accordance with market practice for comparable businesses.
EDB Business Partner therefore has decided to implement a change from the preliminary statement of accounts for 2005 that was presented on 1. February 2006.
The accounting of revenue from software licences is adjusted from deferred revenue recognition over the term of the maintenance contract to revenue recognition at delivery. As a result of the change, the revenues and the earnings before amortisation of intangible assets (EBITA) for 2005 increase by NOK 37 mill. Correspondingly the revenues and earnings before amortisation of intangible assets (EBITA) for 2004 are reduced by NOK 51 mill.
These issues, the Company's evaluation of the provisional practice, and the effects in the accounts from the two different approaches of accounting have been commented in the quarterly reports for 2005.
Adjusted revenue and EBITA per business area has been enclosed with this announcement.
For further information, please contact:
Tore Valderhaug, CFO. Tlf +47 99 56 09 25