Programme

Day One | Day Two

Agenda

Day One: Tuesday 12th July 2005

08:30
Registration and coffee

09:00
Opening remarks from the Chair:

James Leigh, Senior Partner, Energy, Infrastructure and Utilities, DELOITTE

IFRS Implementation

09:10
CASE STUDY: how we managed the initial transition to IFRS and how it has impacted on the business

• Implications of the transition from national standards to IFRS in 2005 on:
  - profits and balance sheet values
  - systems and processes
  - management
  - investor relations
  - managing shareholder expectations

David Hipple, Finance Director, ANGLIAN WATER SERVICES

09:50
CASE STUDY: how to manage the ongoing transition to IFRS within the wider group

• A roadmap for our implementation process, with practical examples
• What have been the most important steps and what are the obstacles involved in such a huge challenge?
• Defining the top-down processes needed to guide the transition and ongoing project successfully
• What challenges remains ahead, and can companies simply overcome them with investments in new systems and processes?

Miguel Ribeiro Ferreira, Head of Planning & Management Control, Consolidation, Accounting and Tax Issues, ENERGIAS DE PORTUGAL

Communicating Financial Reports Under IFRS

10:30
Best practice in the presentation of financial statements

• The balance sheet
• Statement of changes in equity and cash flow statements
• Income statements
• Communicating discontinued operations and correcting of errors

Hazel Powling, Head of IFRS, ICAEW (Institute of Chartered Accountants in England & Wales)

11:10
Morning refreshments

Accounting For Derivatives

11:30
CASE STUDY: IAS 39 implementation at BP Finance

• Summary of existing hedge programmes
• FX hedging for procurement transactions and group exposures
• Forward starting swaps
• Interest rate risk management and the issues concerning IAS 39
• Potential future hedging and strategies

Robert Johnson, Head of Finance and Accounting Control, BP FINANCE

12:10
Clarifying the accounting for embedded derivatives under IAS 39

• The basics of accounting for embedded derivatives under IAS 39
• Embedded derivatives in non-financial instruments e.g. contracts from ‘host contracts’
• Emerging post-implementation views on the embedded derivatives concept
• Knowing what to look for: separating embedded derivatives
• Reviewing the IFRIC draft interpretation: DIS reassessment of embedded derivatives

Brian Murrell, Senior Manager, Energy Markets, DELOITTE

12:50
Lunch

14:00
CASE STUDY: IAS 39 in an Energy Utility

• Managing physical energy positions
• Safeguards to prove dissimiliarity of contracts
• Managing earnings volatility
• Separation of activities for IAS 39 purposes
• Economic hedging v. financial hedging

Jason Clark, Head of Risk Control, RWE TRADING

Business Combinations

14:40
Business combinations and identification, valuation and capitalisation of intangible assets under IFRS

• Definition of business combinations and effective dates
• Goodwill and negative goodwill: implications of new standards on balance sheet and P&L statements
• Determination of useful life and amortisation method for intangible assets
• Accounting method for business combinations
• Recognising and valuing intangible assets (IAS 38)
• Valuation methodology for various intangible assets
• Differences to US GAAP

Mathias Schumacher, Director, STANDARD & POOR’S

15:20
Afternoon refreshments

Impairments & Accounting

15:40
CASE STUDY: reviewing our implementation of IAS 36 - asset impairment testing

• Identifying impaired assets
• Future cash flows
• Accounting for the reversal of an impairment loss
• Understanding the measurement of recoverable amount
• Recognition and measurement of an impairment loss
• Identifying disclosures required in financial reports

Massimo Quaglini, Group Controller & Head of Administration & Planning, EDISON

16:20
CASE STUDY: impairment accounting at Union Fenosa S.A. under IFRS

• Applicable rules for impairment accounting under IFRS
• Determination of fair value
• Presentation of impairment charges in financial statements
• Determination of cash generating units
• Methodology of impairment testing at Union Fenosa S.A.

Alberto Ferreiro, Auditing Manager and Head of the IFRS Center, UNIÓN FENOSA

17:00
Closing remarks from the Chair

17:15
Drinks Reception

Delegates are invited to join the speakers, sponsors and exhibitors at an informal drinks reception

Day Two: Wednesday 13th July 2005

08:30
Registration and coffee

09:00
Opening remarks from the Chair

Ongoing Issues In The Transition To IFRS

09:10
CASE STUDY: what challenges and pitfalls have we faced in the course of the transition process to IFRS, and what solutions have been adopted to overcome future difficulties?

• Identifying the key challenges for Cegedel in the transition to IFRS
• Creating solutions for the IFRS transition problems
• Communicating a whole new set of data to the investors' community
• Putting together a process of implementation to IFRS

Eric Mauer, Deputy Finance and Legal Director, CEGEDEL

09:50
Can full cost accounting survive the switch to IFRS?

• Practical issues with IFRS 6 for full cost companies
• Signals of IASB thinking in the issues paper
• Can the FCA concept mutate to fit into a componentised IFRS framework?
• Would successful efforts kill off the smaller companies sub-sector?
• IASB extractive industries project - progress to date and the path ahead
• History suggests a conflict with US/Canadian policy makers if IFRS excludes the FCA option

Alan R H Thomas, Chairman, OIAC (Oil Industry Accounting Committee)

10:30
Morning refreshments

Emission Rights

10:50
Accounting for greenhouse gas emissions: the ongoing question mark over the accounting treatment under IFRS

• The current rules: emissions allowances accounted for as intangible assets (in line with IAS 38), actual emissions seen as separate contingent liabilities measured at fair value (in line with IAS 37)
• Timelines for revisions on IAS 38 & IAS 20, and how to negotiate this problem in the meantime
• Assessing the risk of this 'mixed measurement approach' creating volatility in a company's P&L statement
• Approaches to determining the fair value of allowances

Robert Casamento, Senior Manager, Energy Markets, DELOITTE

11:30
Emission rights trading and its implications for risk management

• Compliance and tradeable instruments
• Contract structures - spot, forward, options
• Risk and risk mitigation - standard contracts, credit, delivery, non-delivery, political risk
• Markets
• Market intermediaries - brokers, aggregators and funds

Kasper Walet, Managing Director, MAYCROFT

12:10
Lunch

Accounting For Fixed Assets

13:20
Challenges relating to the accounting of fixed assets in the utilities industry:

• The challenges of first time adoption
• Application of the components approach and periodic review of and similar liabilities related to items of property, plant and equipment depreciation amounts and depreciation periods
• Accounting for replacing parts and the accounting treatment of major inspections on power plants
• Managing the issue of accounting for decommissioning, restoration
• Ways to consider the residual values of utility fixed assets

James Leigh, Senior Partner, Energy, Infrastructure & Utilities, DELOITTE

14:00
CASE STUDY: dismantling obligations

• General principles / accounting principles
• Special topics (construction/legal, joints ventures, decomissioning funds, capacity rights...)
• Impacts on KPI's
• Changes in estimates

Wathelet Lepour, Head of Accounting Standards, ELECTRABEL

14:40
Afternoon refreshments

Share Options and Company Valuation

15:00
CASE STUDY: share options and IFRS implementation at Enterprise

• Understanding the impact of IFRS application on share options at our company
• Understanding the issue of options valuation and 'future-value'
• Communicating these changes to the City: knowing what changes there are to the bottom line and why these have occurred

Neil Kirkby, Finance Director, ENTERPRISE

15:40
How much does IFRS really matter to company valuation?

• Reviewing the levels of training and preparation amongst analysts for the treatment of IFRS in forecast models
• Examples of share price adjustments as a result of IFRS valuations in the oil, gas and utilities sectors
• Do these share price adjustments / fluctuations fundamentally affect assessments of company value?
• Assessing the potential for large variations in earnings forecasts and the impact on macro data offered by investment banks
• Developing understanding of analyst valuation methods to help present the impact of IFRS adoption on your accounts

Scott Fulton, Director, FALLON STEWART

16:20
Closing remarks from the Chair

16:30
Champagne prize draw and end of conference

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