Introduction of IFRS rules
Finnair began preparing at the end of 2002 for the introduction of the IFRS financial statement. During 2003 the effects of forthcoming changes in accounting practice were clarified and the Group's accounting and reporting procedures renewed. Training within the organization has begun and further development of accounting preparedness will take place to enable comparative data for 2005 Group reporting to be produced quarterly from 2004.
Finnair will produce its first full IFRS financial statement from 2005. In the light of data currently available, the key changes to accounting principles relate to pension arrangements, maintenance capitalization of the Group's own fleet, maintenance provisions for leased aircraft, goodwill and impairment testing of assets and accounting of financial instruments. Finnair will not apply hedge accounting for the comparison year 2004. Operational leasing liabilities for aircraft on the transition date of January 1, 2004 shall be treated as off-balance sheet liabilities.
In terms of the opening IFRS balance sheet to be prepared for the transition date of January 1, 2004, Finnair shall provide information about the most important effects on financial indicators of the changes in accounting principles in the first quarter interim report of 2004. |