Arnhem, the Netherlands, June 11, 2003 – Akzo Nobel rejects 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.
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.
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