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General information


Accounting policies

The full year 2010 financial figures of AkzoNobel included in the primary statements in this report are derived from the financial statements 2010. These financial statements have been authorized for issue. The financial statements have not yet been published by law and still have to be adopted by the general meeting of shareholders. In accordance with section 2:393 BW, KPMG Accountants N.V. has issued an unqualified auditors opinion on these financial statements, which will be published on February 24, 2011. All quarterly figures are unaudited.

Compared with the accounting principles as applied in the 2009 financial statements, the main change was the adoption of the revised IFRS 3 “Business Combinations”. This has not materially affected the computation of our results. The accounting principles as applied in 2009 can be found in note 1 of the financial statements.

Reclassification comparative figures

We have adjusted the 2009 comparative figures to align with our business structure as from 2010 (see press release of April 7, 2010).

We have redefined invested capital to also include deferred tax liabilities. Our former definition only included deferred tax assets, which we considered to be inconsistent.

In accordance with the requirements in IFRS 5, “Non-current Assets Held for Sale and Discontinued Operations”, we have reclassified National Starch into discontinued operations, as we have agreed to divest our National Starch business. As a consequence, the statements of income and cash flows have been restated. More details are in our Q1 report for 2010.

Seasonality

Revenue and results in Decorative Paints are impacted by seasonal influences. Revenue and profitability tend to be higher in the second and third quarter of the year as weather conditions determine whether paints and coatings can be applied. In Performance Coatings, revenue and profitability vary with building patterns from original equipment manufacturers. In Specialty Chemicals, the Functional Chemicals and the Surface Chemistry businesses experience seasonal influences. Revenue and profitability are affected by developments in the agricultural season and tend to be higher in the first half of the year.

The “other” category

In the category “other” we report activities which are not allocated to a particular business area. Corporate costs are the unallocated costs of our head office and shared services center in the Netherlands (including our Central Research and Technology and Engineering activities). Also reported in the “other” category are the results from our captive insurance companies, Technology and Engineering activities, pension costs after the elimination of interest cost (reported as financing expenses), the cost of share-based compensation, the results of a small business and of treasury and legacy operations.

Copyright © 2011 Akzo Nobel N.V.