Aerospace giant Rolls-Royce’s pre-tax profits for 2004 increased from £306m to £364m after restating its accounts under IFRS.
The group’s finance director Andrew Shilston, said the new standards would have ‘some impact’ on the presentation of the group’s accounts but would not change its business model or cashflows.
‘Rolls-Royce has followed a consistent and successful strategy for many years,’ said Shilston. ‘The adoption of IFRS will have some impact on the presentation of our accounts, but will not change our business model, our strategy, our risk management processes or our cashflows.’
The company added that underlying profits for 2005 were expected to be significantly ahead of current market expectations, which were based on UK GAAP.
The market reacted favourably to the announcement, as Roll-Royce’s shares climbed 3.4% to 256.75p.