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Stock Exchange Annnouncement 16 March 2005

BG Group update on the adoption of International Financial Reporting Standards


BG Group is preparing for the adoption of International Financial Reporting Standards (IFRS) as its primary accounting basis for the year ending 31 December 2005.

As part of this transition, BG Group will publish within its 2004 Annual Report and Accounts released today its re-stated financial information under IFRS, including :-

  • The balance sheet at 1 January 2003 - the date of transition to IFRS based financial reporting.

  • Primary Financial Statements for the 2003 and 2004 financial years under IFRS.

  • The opening balance sheet at 1 January 2005 - following the adoption of IAS 32 and IAS 39 relating to financial instruments.

The re-stated information under IFRS as included in the 2004 Annual Report and Accounts has been audited by PricewaterhouseCoopers LLP.

An explanation of the re-stated financial information can be found in the briefing document which can be accessed via the IFRS information page.

Further financial information, including accounting policies and the special purpose audit report, is contained within our 2004 Annual Report and Accounts which will be downloadable from midday today.

A webcast and call will be hosted by Chief Financial Officer, Ashley Almanza on Monday 21 March at 11.00 am UK time to provide a briefing on the transition to IFRS. The webcast will include time for questions.

To view the webcast or download a copy of the briefing document please visit the following page on our website:

*
http://www.bg-group.com/ir/ifrs.htm


The main changes to BG Group’s reported financial information from the adoption of IFRS are as a result of :

  • The requirement not to amortise goodwill

  • Differences in accounting for employee benefits, principally pensions and share-based payments.

  • Recognition of additional deferred tax balances

  • Immediate recognition of certain items of deferred income

  • Different treatment of regulatory cost pass through at Comgas

  • A change in the timing of recognition of dividends

In addition, with the introduction of IAS 32 and IAS 39 from 1 January 2005, certain items classified as derivative instruments, including a number of long term UK gas contracts will be required to be marked to market.

Speaking today, Ashley Almanza, Chief Financial Officer commented “The financial information provided today shows clearly the overall immaterial effect of IFRS on BG Group’s recent results. The Group will commence reporting under IFRS with the 2005 first quarter results and will separately identify the re-measurement of derivative instruments under IAS 32 and IAS 39. The adoption of IFRS will have no effect on the Group’s strategy, operations or cash flow.”


Enquiries:

Communications
+44 (0) 118 929 3717

Out of hours media assistance:
+ 44 (0)7917 185 707

Investor Relations:
+44 (0) 118 929 3025

 
 

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