Ericsson

Team 17

Introduction
Founded in 1876
Operates Worldwide Issue stock in 3 major stock markets Key Competitors

Influence on Accounting Standards and Practices

Anglo-American German Swedish Socialist State

Impact of listing on foreign stock markets

Had to comply with listing requirements
Transparent Accounting Have to report financial results in both US GAAP an IFRS Ericsson has benefited from listing on foreign stock exchanges

Should Ericsson adopt Full IFRS or EU IFRS

Ericsson chose not to early adopt IFRS
EU-mandated IFRS was more limited in scope

It was decided that more than one set of IFRS could be used- a dual standard

Type of IFRS Ericsson decided to disclose in financial statements

Full transition from U.S. GAAP to IFRS No real difference between IFRS issued by the IASB and IFRS endorsed by the EU

Ericsson demonstrates that a company does not have to use U.S. GAAP in either its primary financial statements or a reconciliation statement in order to raise capital

IFRS and The Index of Conservatism

Differences between the effect of Swedish GAAP and IFRS Differences between the effect of US GAAP and IFRS

Index in 2006 for IFRS income and U.S. GAAP income

IFRS Net income - SEK 26.436 millions and US GAAP income - SEK 26.080 millions What does that tell us about the convergence process?