Today, Aegon reports its preliminary 2004 comparative figures under International Financial Reporting Standards (IFRS).
These figures and the explanation of the most important effects are provided as additional information for the financial community in order to facilitate the comparison of Aegon's 2004 DAP results with the results on an IFRS basis. This information should not be viewed as a replacement of the official 2004 financial statements that were prepared under DAP. From January 1, 2005, all publicly listed companies in the European Union – including Aegon – are required to prepare their financial statements in conformity with IFRS. Aegon's first complete set of IFRS financial statements and accompanying notes will be the annual financial statements for 2005. The 2005 quarterly results will only be reported on an IFRS basis. Aegon will report its first quarter 2005 results on May 11, 2005.
"Aegon strongly supports the transition to a uniform accounting framework that can facilitate the comparability of companies. We will continue to contribute to the development of the standards, specifically as these standards continue to evolve for IFRS insurance accounting in phase II. During the initial phase of the IFRS implementation, the volatility of reported earnings and shareholders' equity will increase. This volatility largely reflects the difference between the way certain assets are valued on the one hand and related liabilities on the other. In conjunction with net income, operating earnings and embedded value are important measures of underlying business performance. While the adoption of a new accounting system changes the way Aegon reports externally, it is important to understand that this does not change the fundamental economics of our business", said Aegon's CFO and Member of the Executive Board Jos Streppel.
The starting point for preparation of comparative figures is the Opening Balance Sheet on January 1, 2004. The difference between assets and liabilities valued under DAP and assets and liabilities valued on an IFRS basis, is reflected as an adjustment in shareholders' equity in the Opening Balance Sheet.
The preliminary 2004 IFRS information presented is unaudited and has been derived from accounting policies based on IFRS as of March 31, 2004 (referred to as the 'stable platform'). These accounting policies, and consequently the information presented, may still change due to revisions in IFRS up to December 31, 2005. In addition, further review and analysis of items such as (but not limited to) the consolidation of investment vehicles may cause some of the reported key effects to change as well.
Shareholders’ equity at December 31, 2004 under IFRS amounted to EUR 14.9 billion, compared to EUR 14.4 billion on a DAP basis. The main differences arise from a combination of:
Net income under IFRS amounted to EUR 2,259 million compared to EUR 1,663 million on a DAP basis. The main differences arise from a combination of:
Management believes that pre-tax operating earnings provides useful and important information to analysts and investors as an indicator of Aegon’s financial performance. Operating earnings before tax exclude the effect from net gains and losses on investments, impairment charges and non-recurring income and expense items. Operating earnings before tax amounted to EUR 1,813 million.
The document, Aegon 2004 comparative IFRS figures (see related documents), provides an extensive set of comparative IFRS data, including explanations of the main differences that arise between IFRS and DAP. The document contains an overview of significant IFRS accounting policies as applied by Aegon, a reconciliation of consolidated net income from DAP to IFRS, as well as the 2004 IFRS consolidated income statement. Line of business results are also presented. In addition, shareholders’ equity as of January 1, 2004 and December 31, 2004 are reconciled from DAP to IFRS. The consolidated balance sheet under IFRS together with an equity roll forward is presented for both January 1, 2004 and December 31, 2004. Finally, the document contains addenda with relevant information per line of business and reconciliations of net income, per country unit and per quarter. We believe that this information will aid in enhancing the understanding of Aegon’s new reporting basis for investors, analysts and the general public.
© Aegon 2020