International Financial Reporting Standards (IFRS)

During 2007, the Group has applied a number of new and adjusted IFRS standards and IFRIC interpretations. The application of these adjusted standards and interpretations does not impact the balance sheet and income statement. The application has, however, led to the inclusion of a limited number of additional notes in the annual report.

In August 2005, IASB published IFRS 7, "Financial Instruments: Disclosures", as well as changes in IAS 1 "Presentation of Financial Statements", concerning disclosures on capital. IFRS 7 has introduced new reporting requirements, with the objective of improving the information that is given in the financial statements about financial instruments. This standard replaces IAS 30, "Disclosures in the Financial Statements of Banks and Similar Financial Institutions", and also certain requirements of IAS 32 "Financial instruments: Disclosure and Presentation". The changes in IAS 1 set requirements for disclosures regarding equity capital of a business unit. IFRS 7 is expected to lead to a greater transparency with regard to the risks that the Group may be exposed to, due to the use of financial instruments. Combined with the new requirements of IAS 1, this should lead to clearer information being provided to the investors and other users of our Annual Report, so that they will be able to make better informed judgments about the risks and yields.

The new or revised standards, which are applicable after 2007, have not yet been applied. The application of these standards does not, however, have any material effect on the 2007 figures. In November 2006, the IASB published the new standard IFRS 8, "Operating Segments". This standard must be applied for the first time for the figures of 2009. The new standard requires that reporting for operating segments must be based on "management estimates". We do not expect that IFRS 8 will cause a material change to our present reporting on operating segments. IAS 1 "Presentation of Financial Statements" was revised, and has an impact on the presentation of alterations in equity capital, as well as on the presentation of consolidated income statements. This standard must be applied for the first time on the figures of 2009. IAS 23 "Borrowing Costs" has also been revised and eliminates the option of including all financing costs in the results. If the costs of financing are directly attributable to the acquisition, construction or production of an asset, then these must be activated along with the asset. This standard must be applied for the first time for the figures of 2009, but it will have no material impact on the results of the Group. IFRIC 14, concerning assets of contributions granted to pension plans, must be applied for the first time for the figures of 2008, but it will have no material impact on the financial position of the Group.