Conversion to IFRS effective 1 January 2005 Analysts Presentation Thursday 25th August 2005
IFRS changes the financial reporting and timing of profit recognition it does not impact the value drivers of the business. The highlights in respect of effect of IFRS to Premier are as follows: No change to strategy or targets No…
Premiers 2005 interim accounts will be prepared in accordance with IFRS. This announcement restates the 2004 comparatives. Objectives Implementation of required IFRS changes Select an accounting policy that maintains transparency to…
Changes arise from a number of standards, with four of particular relevance to Premier Oil. Changes to accounting policies from IFRS adoption - IAS 16 Property plant & equipment - IAS 31 Joint venture accounting - IFRS 6…
The adoption of a successful effort accounting policy requires unsuccessful exploration costs to be written-off in the Income Statement. Impact of adoption of successful efforts 2004 Balance sheet - Write off of unsuccessful…
Under UK GAAP our 2004 earnings were US43.8 million and net assets at 31 December 2004 were US430.3 million. 45 440 420 40 400 35 380 43.8 430.3 360 30 340 25 320 20 300 Profit after taxation Net assets
Recognising the obligation of employee long-term benefits and accounting for pensions under IAS19 takes US1.5 million off earnings and US8.8 million of net assets. 45 440 (1.5) (8.8) 420 40 400 35 380 43.8 430.3 360 30…
IFRS requires that all pre licence costs are written-off in the year they are incurred, this results in a write back of US3.9 million to earnings, but lowers net assets by US2.3 million. 50 440 430 45 3.9 (8.8) (1.5) (2.3) 420…
IFRS requires that deferred PRT be calculated on a timing difference basis, rather than a UOP method. This decreases net assets by US22.2 million, but increases 2004 earnings by US4.5 million. 55 440 50 430 4.5 (8.8) 420 (2.3) 45…
The fair value adjustments to the opening fixed assets results in an increase to amortisation that reduces 2004 earnings and net assets by US4.4 million. 55 440 50 430 4.5 (4.4) (8.8) (2.3) 45 420 3.9 (1.5) 410 40 (22.2) 400 35…
In PKP (joint venture in Pakistan) the adoption of successful efforts reduces 2004 earnings by US2.9 million and net assets by US37.8 million. 440 55 430 (8.8) (2.3) 420 50 4.5 (4.4) 410 45 (2.9) (22.2) 3.9 (1.5) 400 40 (4.4)…
The application of successful efforts to the intangible assets has reduced 2004 earnings by US21.2 million and net assets by US40.6 million. 440 55 (8.8) (2.3) 420 50 4.5 (4.4) (22.2) 45 (1.5) 3.9 (2.9) 400 (4.4) 40 380 35…
The fair value adjustment relating to Indonesia has increased net asset values by US9.8 million with no impact to 2004 earnings. 440 55 50 4.5 (4.4) (8.8) (2.3) 45 (1.5) 3.9 (2.9) 420 40 35 (21.2) (22.2) 30 43.8 400…
The fair value adjustment relating to the UK increases net asset values by US30.0 million with no impact to 2004 earnings. 440 55 50 4.5 (4.4) (8.8) 45 (1.5) 3.9 (2.9) (2.3) 420 40 35 (21.2) 30 (22.2) 25 43.8 400 (4.4)…
The implications of IFRS for the future are. Reported profits generated by producing assets will directly reflect the performance of those assets Earnings will reflect exploration success and failure Historic fair values have…
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