Global mining giant Anglo American will show a very small decline of nine United States cents in its basic headline earnings per share (Heps) for the year to the end of December 2004, to $1,79 from $1,88, as it converts to the use of the new European Union standard International Financial Reporting Standards (IFRS) from United Kingdom Generally Accepted Accounting Principles (GAAP), the company said on Monday.
Detailing the impact on the company’s 2004 financial statements of its adoption of IFRS, Anglo American said that for the year to the end of December 2004, apart from the decline in headline earnings per share, profit attributable to shareholders will increase by $0,41 per share to $2,44 from $2,03 under UK GAAP.
Group turnover, including share of joint ventures, will rise by $143-million to $26,268-billion from $26,125-billion, while total profit from operations and associates (before exceptional items) will rise by $105-million to $4,298-billion.
Profit for the year attributable to shareholders will rise by $588-million to $3,501-billion from $2,913-billion, and earnings before interest, taxation, depreciation and amortisation will fall by $79-million to $7,031-billion from $7,110-billion previously.
Net operating assets will be reported $2,54-billion higher at $40,141-billion from $37,601-billion under UK GAAP, and cash flow from operating activities will rise by $518-million to $5,291-billion from $4,773-billion.
Anglo American will be reporting under IFRS for the first time in its interim results for the six months to June 30 2005, and the group’s first annual report under IFRS will be that for the 2005 financial year.
The results will include comparative IFRS information for the relevant corresponding period in 2004 as well.
Anglo American finance director Tony Lea commented: “Transparency and consistency of financial reporting were prime objectives for the group’s transition project. IFRS has not changed how we as a group do business, and the presentation and accounting changes made will not detract from our underlying business performance.” — I-Net Bridge