Akzo Nobel Rejects Criticism of 2002 Financial Statements.Business Editors ARNHEM, The Netherlands--(BUSINESS WIRE)--June 11, 2003 Akzo Nobel Akzo Nobel is a multinational company, active in the fields of healthcare products, coatings and chemicals. Headquartered in Amsterdam, the Netherlands, the company has activities in more than 80 countries, and employs approximately 62,000 people. rejects the criticism expressed by "Stichting Onderzoek Bedrijfs Informatie" (SOBI SOBI Sigsiu Online Business Index SOBI Second-Order Blind Identification ) of the reporting of pension liabilities Pension liabilities Future liabilities resulting from pension commitments made by a corporation. Accounting for pension liabilities varies widely by country. 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 SFAS Statement of Financial Accounting Standards SFAS Special Forces Assessment and Selection SFAS Student Financial Aid Services SFAS Sport Fishing Association of Singapore SFAS Safety Features Actuation System SFAS Statewide Fixed Assets System 87, which also takes future salary increases into account. Application of this standard resulted in a charge against shareholders' equity Shareholders' Equity A firms' total assets minus its total liabilities. Equivalently, it is share capital plus retained earnings minus treasury shares. Shareholders' equity is the amount by which a company is financed through common and preferred shares. of EUR EUR In currencies, this is the abbreviation for the Euro. Notes: The currency market, also known as the Foreign Exchange market, is the largest financial market in the world, with a daily average volume of over US $1 trillion. 1.1 billion for the minimum pension liability in the 2002 financial statements. In a summons, SOBI states 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. Note for the editor Akzo Nobel, based in the Netherlands, serves customers throughout the world with healthcare products, coatings and chemicals. Consolidated sales for 2002 totaled EUR 14 billion. The Company currently employs approximately 67,500 people in more than 80 countries. Financial results for the second quarter will be published on July 18, 2003. Safe Harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. Statement* This press release contains statements, which address such key issues as Akzo Nobel's growth strategy, future financial results, market positions, product development, pharmaceutical products in the pipeline, and product approvals. Such statements should be carefully considered and it should be understood that many factors could cause forecasted and actual results to differ from these statements. These factors include, but are not limited to price fluctuations, currency fluctuations, developments in raw material and personnel costs, physical and environmental risks, legal issues, and legislative, fiscal, and other regulatory measures. Stated competitive positions are based on management estimates supported by information provided by specialized external agencies. For a more complete discussion of the risk factors affecting our business please refer to our Annual Report on Form 20-F filed with the United States Securities and Exchange Commission. * Pursuant to the U.S. Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and 1995. |
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