May, 2004:

YAHOO.com: Press Release from The “Shell” Transport and Trading Company, p.l.c.

The ‘Shell’ Transport and Trading Company, p.l.c. – Pre Advice to Annual Report Publication
Monday May 24, 7:28 am ET

Advice in advance of the publication of the 2003 Annual Reports and Accounts of the Royal Dutch Petroleum Company and The ‘Shell’ Transport and Trading Company, p.l.c.

Mr Jeroen van der Veer, Chairman of the Committee of Managing Directors of the Royal Dutch/Shell Group of Companies, commented on today’s announcement:

“I am pleased that on Friday we will be publishing our annual reports and accounts for Royal Dutch and Shell Transport as previously announced. The external auditors have given unqualified audit opinions. The annual reports and accounts will reflect a restatement of reserves data and related financial impact, and we have implemented a number of accounting policy changes. We have also adopted a stricter application of some specific accounting standards.

“The aggregate effect of the reserves restatement, including the previously disclosed recategorisations and an adjustment with respect to royalties paid in cash in Canada, brought the total for 2002 to 4.47 billion barrels of oil equivalent.”

Discussions with the Division of Corporation Finance of the US Securities and Exchange Commission (SEC), about Shell’s Form 20-F filings continue, in particular with regard to financial statements and unaudited supplementary oil and gas data.

The Group has implemented the following accounting policy changes with effect from 2003:

1. The Group financial statements will be presented in accordance with US Generally Accepted Accounting Principles (GAAP) with a reconciliation to statements presented under Netherlands GAAP. Prospectively the difference with regard to net income is that goodwill is amortised under Netherlands GAAP; whereas under US GAAP goodwill is maintained at the acquisition value and then tested for impairment. 2. All inventories will now be reported on a First-In-First-Out (FIFO) basis. Previously certain inventories in North America were reported on a Last-In-First-Out (LIFO) basis and disclosed in the notes to the financial statements. As a result the Group's accounting policy for inventories is on the same basis globally. The Group will be adopting International Financial Reporting Standards (IFRS) in 2005. Under IFRS, FIFO is the prescribed method for valuing inventories. read more