This excerpt taken from the NDAQ 8-K filed Feb 20, 2008.
Summary of material differences between IFRS and U.S. GAAP
OMX prepares its consolidated financial statements in accordance with IFRS as adopted by the European Union, which differ in certain significant respects from U.S. GAAP. The principal differences between IFRS and U.S. GAAP as they relate to OMX are discussed in Note 36 to OMXs consolidated financial statements as of and for the years ended December 31, 2006 and 2005 and in Note 8 to OMXs unaudited interim condensed consolidated financial statements as of and for the nine months ended September 30, 2007. These notes include a reconciliation of net income and shareholders equity under IFRS to net income and shareholders equity under U.S. GAAP.
The most significant items in reconciling OMX net income and shareholders equity under IFRS and U.S. GAAP related to amortization of goodwill and intangible assets, revenue recognition of software arrangements, accounting for capitalized development costs and accounting for derivatives and hedging. Further information on such differences and adjustments is set forth in the notes to OMXs consolidated financial statements mentioned above.
Net income from continuing operations under U.S. GAAP amounted to SEK 904.5 ($132.2) million for the year ended December 31, 2006, up from SEK 406.8 ($54.4) million for 2005 under U.S. GAAP. This corresponds to a 122% increase in net income in Swedish kronor under U.S. GAAP, as compared to a 71% increase in net income under IFRS. This difference is primarily related to capitalized development fees that were significantly higher in 2005 than 2006.
In 2005 and 2006, increased amortization expenses under U.S. GAAP relating to intangible assets identified for the acquired entities had a negative SEK 57.8 ($8.4) million effect on amounts presented under U.S. GAAP compared to IFRS for each of the two years.
Net income from continuing operations under U.S. GAAP amounted to SEK 747 ($112.0) million for the nine months ended September 30, 2007.