AstraZeneca PLC · LSE:AZN
AstraZeneca — The Definitive IFRS 2005 Conference
18 slides from AstraZeneca's conference presentation, Sep 14, 2004
Slide 1: The Definitive IFRS 2005 Conference: The UK Scene - The View From The CFO
A The Definitive IFRS 2005 Conference The UK Scene - The View From The CFO 14 September 2004 Jon Symonds
Slide 2: AstraZeneca: vital statistics
AstraZeneca : vital statistics Market capitalisation $75 billion FTSE Rank #6 Global pharmaceuticals 6th Sales $20 billion Net Assets $13 billion A
Slide 3: Introduction to AstraZeneca PLC: Where did we come from?
Introduction to AstraZeneca PLC Where did we come from? Astra AB Zeneca Group plc …...merged on 6 April 1999 A
Slide 4: Introduction to AstraZeneca PLC: Accounting and reporting
Introduction to AstraZeneca PLC Accounting and reporting Listed in London, New York and Stockholm Primarily under UK GAAP Reconciliation to US GAAP and US disclosures If significant, disclosure of IAS results and net assets A
Slide 5: Convergence – Why is Convergence Important?
Convergence – Why is Convergence Important? 2003 2002 UK GAAP US GAAP UK GAAP US GAAP Net Profit $3,036m $2,268m $2,836m $2,307m Net Assets $13,257m $33,654m $11,226m $30,183m A
Slide 6: Our approach
Our approach Our financial language is changing What does it mean? - external reporting - internal reporting - decision making - behaviour It’s not a technical accounting exercise A
Slide 7: Timeline
Timeline Mid 2002 onwards - impact assessment of IASB exposure drafts April 2003 - set up of project team April 2004 - begin training July 2004 - audit committee approval October 2004 - first communications to market April 2005 - first results under IAS/IFRS A
Slide 8: Where are the impacts: External reporting
Where are the impacts External reporting business combinations goodwill and intangibles share based payments pensions financial instruments deferred taxation A
Slide 9: Where are the impacts: Decision making
Where are the impacts External Reporting Decision making M&A product licensing research collaborations 2005 budget targets A
Slide 10: Where are the impacts: Behaviour
Where are the impacts External Reporting Decision making Behaviour share based payments pensions A
Slide 11: It's a new language – don't take it for granted
It’s a new language – don’t take it for granted everyone knew the old one! All finance professionals trained according to need - financial accountants - management accountants - business analysts - deal makers IAS expert in every major country 1000 finance people trained in 3 months Non-financial pe
Slide 12: Make sure the Audit Committee is regularly briefed
Make sure the Audit Committee is regularly briefed 3 major audit committee reviews Project planning and resource requirements Initial impact assessment, including options - Alternatives existed for: - share based payments - financial instruments - Pensions - Restating the merger! Approval of final a
Slide 13: Communication: it's not done until it's communicated
Communication : it’s not done until it’s communicated Key questions to address • What should be communicated? • What’s different? • When does the market need it? • How could it be interpreted? It requires careful dialogue with the market A
Slide 14: Communication: the AZ timetable
Communication : the AZ timetable (100 Group best practices) July 2004 : high level communication plan and impact October 2004 : accounting policies Impact explanation Detailed restatements - 2003 (four quarters) - 2004 (quarters 1 and 2) Analyst/investor conference call January 2005 : 2004 (four qua
Slide 15: Communication: issues/learnings
Communication : issues/learnings Work with industry peers - it’s not competitive - align classifications 2004 year end results : avoid confusion - restatements with or after preliminaries - how to deal with earnings guidance What earnings? - EPS? - EPS before volatile items? - EPS before volatile it
Slide 16: IAS – where next?
IAS – where next? Full convergence is the only ambition - align external reporting - simplify internal accounting - improve quality of financial information Partial/political solutions dangerous - EU : IAS 39 - US : share based payments A
Slide 17: IAS – where next? This is the easy bit!
IAS – where next? This is the easy bit! - pensions - revenue recognition - comprehensive income - performance reporting - elimination of US GAAP reconciliation A
Slide 18: The Definitive IFRS 2005 Conference
A The Definitive IFRS 2005 Conference The UK Scene - The View From The CFO 14 September 2004 Jon Symonds