IFRS principles
The adoption of IFRS has not had a substantial effect on the earnings or balance sheet structure of Oriola-KD. Total assets according to the balance sheet of 31 December 2004 increased from the FAS amount of EUR 627.0 million to EUR 644.1 million and the operating profit for the fiscal year 2004 rose from the FAS figure of EUR 24.8 million to EUR 27.0 million. The main impacts on Oriola-KD Group’s reporting were the following:
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Oriola-KD has gone over to a classification of expenses by function.
In its FAS reporting, the company applied a classification of expenses
by their nature. Because the company is not engaged in manufacturing
or research, this change has not had an essential impact on its
reporting.
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The amortisation of goodwill is no longer calculated. Goodwill is
tested annually for any impairments. In the FAS financial statements
for 2004, the amortisation of goodwill totalled EUR 2.4 million.
- The pension benefits for the Finnish personnel of Oriola Corporation have been arranged through the Orion Pension Fund and pension insurance companies. For part of the personnel, a supplementary pension benefit is also arranged through the pension fund. The employee benefits arranged through the pension fund are classified as defined benefit plans. Employee benefits arranged through the pension fund have given rise to an asset item in Oriola-KD’s balance sheet (EUR 11.3 million at 31 December 2004, EUR 12.4 million at 31 December 2005 and EUR 13.0 million at 31 March 2006). As part of the Demerger, it is intended that the Orion Pension Fund also be demerged into two new pension funds, the new Orion Pension Fund and the Oriola Pension Fund, in a procedure in accordance with the Pension Funds Act and decided upon by the Board of Directors of the present Orion Pension Fund and the employer companies.
