Luxottica To Begin Financial Reporting In Accordance With IAS/IFRS - Luxottica Group, Milan, 2010 April 16

http://dailynewsstop.com/14486/luxottica-to-begin-financial-reporting-in-accordance-with-iasifrs/

MILAN, April 16, 2010 /PRNewswire via COMTEX/ –Luxottica Group
S.p.A. /quotes/comstock/13*!lux/quotes/nls/lux (LUX 27.99, -0.74,
-2.58%) announced today that starting with the first quarter of fiscal
year 2010 and for all future reporting periods it will report its
financial results in accordance with the International Accounting and
Reporting Standards (“IAS/IFRS”) in all financial communications
including reports to the Securities and Exchange Commission of the
United States (“SEC”). Up to and including the 2009 fiscal year,
Luxottica had been reporting its financial results under Generally
Accepted Accounting Principles of the United States (“U.S. GAAP”), which
it used since its initial listing on the New York Stock Exchange.

The requirements of IAS/IFRS and U.S. GAAP have converged in recent
years, which has facilitated Luxottica’s transition to a single set of
accounting standards for all of its external reporting. In addition,
since 2007, the SEC has allowed foreign issuers to file their financial
statements prepared in accordance with IFRS without requiring any
reconciliation to U.S. GAAP.

Since 2005, the Group has also been preparing consolidated financial
statements in Italy in accordance with IAS/IFRS as required by Italian
laws, and has provided the financial community with a reconciliation of
its U.S. GAAP and IAS/IFRS results on a quarterly basis.

Based on our recent results, the principal differences between U.S.
GAAP and IFRS as they relate to Luxottica are immaterial from a
financial perspective and include:

Share-based payment (IFRS 2 vs ASC 718) and related tax effects (IAS
12 vs ASC 740):

The method for the recognition of share-based payments charges upon a
change in the vesting period (service period in which the employees
provide their services in exchange for share-based payments), which is
prospective under U.S. GAAP and retrospective under IAS/IFRS.

The method to calculate the tax effects associated with stock option
expensing: under U.S. GAAP, the tax effect is calculated based on the
fair value of the options as of the grant date and under IAS/IFRS, the
calculation is based on the intrinsic value of the stock options
(difference between exercise price and share price as of the balance
sheet date).

Inventories (IAS 2 vs ASC 330): certain types of costs can be
capitalized under IAS/IFRS but not under U.S. GAAP.

Business combinations (IFRS 3 vs ASC 805): differences in 2009 (year
in which the Group utilized the old IFRS 3 version) included:

certain ancillary acquisition costs which could be capitalized under
old IFRS 3, applied to the Group until December 31, 2009, but not under
ASC 805. With the revised IFRS 3, which took effect on January 1, 2010,
the capitalization of such costs is no longer permitted;

the recognition of business combinations in which non-controlling
shareholders are granted a put option to sell their interest to the
Group. Under IAS/IFRS, companies acquired and accounted for under this
formula are fully consolidated without a separate line item for
non-controlling interests. Under U.S. GAAP, such subsidiaries are
consolidated in proportion to the Group’s ownership, with a separate
line item indicating the equity and profit pertaining to non-controlling
interests.

Employee Benefits (IAS 19 vs ASC 715): Under U.S. GAAP, the time
horizon to calculate expected returns on plan assets may be based on the
fair value of the assets over a period as long as 5 years. Under
IAS/IFRS, this calculation is performed on the fair value of the assets
as of the balance sheet date.

Long-Term debt (IAS 39 vs ASC 310): U.S. GAAP permits the
capitalization of borrowing costs and their amortization over the life
of the loan. Under IAS/IFRS, such costs are recognized on the basis of
their amortized costs, calculated on the basis of the effective interest
rate.

The financial statements for the quarter ended March 31, 2010, which
will be reviewed and approved by the Board of Directors on April 29,
2010, will be reported in accordance with IAS/IFRS. For a comparison
with the results published in 2009 (in accordance to U.S. GAAP), the
financial statements of the Group, which were already published in 2009
on a quarterly basis, and its divisions are shown below as prepared in
accordance with IAS/IFRS. Such figures will be used as a comparative
base for the 2010 financial statements. In 2010 the company will not
report an IAS/IFRS to U.S. GAAP reconciliation

About Luxottica Group S.p.A.

Luxottica Group is a leader in premium fashion, luxury and sports
eyewear, with over 6,200 optical and sun retail stores in North America,
Asia-Pacific, China, South Africa and Europe and a strong and
well-balanced brand portfolio. Luxottica’s key house brands include
Ray-Ban, the best known sun eyewear brand in the world, Oakley, Vogue,
Persol, Oliver Peoples, Arnette and REVO, while license brands include
Bvlgari, Burberry, Chanel, Dolce & Gabbana, Donna Karan, Polo Ralph
Lauren, Prada, Salvatore Ferragamo, Tiffany and Versace. In addition to a
global wholesale network covering 130 countries, the Group manages
leading retail brands such as LensCrafters and Pearle Vision in North
America, OPSM and Laubman & Pank in Australasia, LensCrafters in
Greater China and Sunglass Hut globally. The Group’s products are
designed and manufactured in six Italy-based manufacturing plants, two
wholly-owned plants in China and a sports sunglass production facility
in the U.S. In 2009, Luxottica Group posted consolidated net sales of
Euro 5.1 billion. Additional information about the Group is available at
luxottica.com.

Safe Harbor Statement

Certain statements in this press release may constitute
“forward-looking statements” as defined in the Private Securities
Litigation Reform Act of 1995. Such statements involve risks,
uncertainties and other factors that could cause actual results to
differ materially from those which are anticipated. Such risks and
uncertainties include, but are not limited to, our ability to manage the
effect of the uncertain current global economic conditions on our
business, our ability to successfully acquire new businesses and
integrate their operations, our ability to predict future economic
conditions and changes in consumer preferences, our ability to
successfully introduce and market new products, our ability to maintain
an efficient distribution network, our ability to achieve and manage
growth, our ability to negotiate and maintain favorable license
arrangements, the availability of correction alternatives to
prescription eyeglasses, fluctuations in exchange rates, changes in
local conditions, our ability to protect our proprietary rights, our
ability to maintain our relationships with host stores, any failure of
our information technology, inventory and other asset risk, credit risk
on our accounts, insurance risks, changes in tax laws, as well as other
political, economic and technological factors and other risks and
uncertainties described in our filings with the U.S. Securities and
Exchange Commission. These forward-looking statements are made as of the
date hereof, and we do not assume any obligation to update them.