LensCrafters 2004 Annual Report Download - page 73

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Luxottica Group prepared the consolidated financial
statements contained in this report in accordance
with generally accepted U.S. accounting principles
known as U.S. GAAP. Luxottica Group, through the
approval of CONSOB (Report No. 27021 of April 7,
2000), decided that preparing its financial and
economic statements in accordance with U.S. GAAP,
rather than the corresponding Italian GAAP, was
opportune for the following reasons:
- it maintains continuity and consistency with the
financial information reported in previous years,
which were prepared under U.S. GAAP, facilitating
their comparison;
- it maintains continuity and consistency in the
Group’s consolidated financial statements and
those of its U.S. subsidiaries, (prepared under U.S.
GAAP), which account for over 50% of the Group’s
results.
Luxottica Group makes available the consolidated
financial statements prepared in accordance with
Italian GAAP, in compliance with the Italian laws in
force regarding companies listed on the MTA. In the
table on the following page, the differences between
the two consolidated financial statements are
expanded upon, with reference to the statements of
consolidated income for fiscal year 2004.
The primary difference regards the amortization
period for goodwill and the brands, regarding the
U.S. Shoe acquisition in 1995. The amortization
period, reported by the U.S. subsidiary, varies from
ten to 25 years according to U.S. GAAP measures,
and from five to ten years according to Italian GAAP
measures.
Furthermore, in compliance with EEC regulations
(EEC Regulation No. 1606/2002), beginning with the
financial statements for fiscal year 2005, European
companies listed on the Stock Exchange must
prepare their consolidated financial statements in
accordance with international accounting principles
(IAS/IFRS). Luxottica Group will comply with this
ordinance beginning with the 2005 half-year report.
RECONCILIATION OF THE ITALIAN
AND U.S. GAAP CONSOLIDATED
FINANCIAL STATEMENTS
72
ANNUAL REPORT 2004