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The balance sheet total in the opening IFRS balance sheet at October 01, 2004 has decreased by only €657 million compared with the US GAAP balance sheet at September 30. What is the reason for this?

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The balance sheet total in the opening IFRS balance sheet at October 01, 2004 has decreased by only €657 million compared with the US GAAP balance sheet at September 30. What is the reason for this?

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Compared with US GAAP, the balance sheet total in the opening IFRS balance sheet is €657 million lower (-2.1%). On the assets side, the main reasons for this decrease were impairment of goodwill and long-term assets and the reduction in deferred taxes. Opposing effects were caused, for example, by capitalization of development costs and by the reversal of the derecognition of receivables sold. Note also that different accounting approaches between US GAAP and IFRS did not always have an effect on the amounts stated in the balance sheet but in some cases resulted only in reclassifications (e.g. minority shares, other accrued liabilities, investment property).

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