Dutch banking giant ABN AMRO would have suffered a profit drop of 200m euros (£137m) if its 2004 figures were calculated under IFRS.
Its net profit of 4bn euros (£2.7bn), measured under Dutch GAAP, would have fallen to £3.8bn euros using IFRS – a 5% drop.
Revenues would have been 883m euros lower under IFRS, from 18.7bn euros to 17.9bn euros.
The drop would be mainly caused through its business unit in north America, due to realising the sale of part of its investment portfolio, which would be amortised under Dutch GAAP but directly charged to the income statement under IFRS. Changes in the way hedging is dealt with under the international standards would also have an adverse effect on profits.
CFO Tom de Swaan stressed that IFRS would not change the way the bank would be run. ‘Accounting will continue to reflect our business decisions, not influence those decisions.’
The bank confirmed that the figures under IFRS were calculated on the basis of the standards’ full implementation, including controversial IAS32 and IAS39.
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