Akzo Nobel, Arnhem, the Netherlands, has rejected the criticism
expressed by "Stichting Onderzoek Bedrijfs Informatie" (SOBI)
of the reporting of pension liabilities in the 2002 financial
statements. Akzo Nobel's financial statements are prepared in
accordance with Dutch accounting standards (Richtlijnen voor de
Jaarverslaggeving) and are accompanied by an unqualified auditors"
report.
For the recognition of the pension liabilities the company thus
follows the internationally frequently applied standard SFAS 87, which
also takes future salary increases into account.
Application of this standard resulted in a charge against
shareholders' equity of EUR 1.1 billion for the minimum pension
liability in the 2002 financial statements. In a summons, SOBI stated
that this amount should have been charged against the statement of
income. Akzo Nobel rejects that, because Akzo Nobel has, in conformity
with section 271.309 of the Richtlijnen voor de Jaarverslaggeving, fully
and consistently applied SFAS 87.
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