The Group has adopted IFRS (International Financial Reporting Standards) as from 1 January 2005. The first annual IFRS financial statements have been prepared for the 2005 financial year. Prior to the introduction of IFRS, Biotie Therapies Corp. has prepared its consolidated financial statements in accordance with Finnish Accounting Standards.
As a consequence of the transition to IFRS, Biotie Therapies Group’s shareholders’ equity decreased by a total of EUR 15.0 million in the opening balance sheet at 1 January 2004. The decrease in consolidated shareholders’ equity is attributable to the transfer of capital loans from equity to interest-bearing non-current liabilities and the interest on capital loans is expensed through profit and loss.
The IFRS standards in force at the time of preparation of the financial statements were applied in preparing the opening balance sheet. The effects of the transition to IFRS reporting on the consolidated opening balance sheet and shareholders’ equity are presented in greater detail in the stock exchange release published on 30 March 2005. Quarterly comparative information in accordance with IFRS for 2004 is presented in Q1 2005 interim report release.