The changeover to international financial reporting standards has claimed its first European scalp after seven days of it being introduced.

In a briefing to analysts and investors, Axa, France's largest insurer, was forced to announce that its net earnings would be affected by the switch to IFRS. It said shareholders' funds would also be reduced by 5% because of the changes.

It added that reported revenues would be reduced by 6% as a result of the move from French GAAP to IFRS.

Axa is one of the biggest companies to be hit by European Union regulations that require all 7,000 listed companies within the EU to adopt IFRS standards from January 1.

Axa's annual revenues were 71.6bn euros (£50.29bn) in 2003. In a more positive statement, Axa's chief executive Henri de Castries, said the accounting change would have no impact on its operating profit of 1.4bn euros (£980m).