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Landsvirkjun adopts US dollar as operating currency

November 9, 2007

According to law, Landsvirkjun must adopt international accounting standards from 2007, because the company’s debenture is listed on markets both in Iceland and in Luxembourg.

The decision regarding the operating currency is one of the basic items in the implementation of the accounting standards. The decision is not optional. The standard contains instructions regarding the fundamentals that must be taken into account when choosing an operating currency.

The year 2008 will be Fjardaál in Reydarfjördur’s first full operating year, which will see the US dollar take a predominant role in the composition of the company’s income. The dollar’s role in the company’s expenses is also substantial. It has been shown that from next year, company operations will be more closely linked to the US dollar than to the Icelandic krona.

Landsvirkjun’s accounting and reporting obligations have affected the decision to adopt the dollar as the operating currency. The company will continue to use the krona in dealings with its customers in domestic wholesale markets.

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