A switch to the latest reporting standards would have reduced Marconi's losses by two thirds, the company said yesterday.
The telecoms equipment group which employs 2,500 people in Coventry said if International Financial Reporting Standards (IFRS) had been implemented for the first half of 2005, its group operating loss would have been cut to £19 million.
The cut, from the reported loss of £63 million, would have been mainly as a result of the cessation of £46 million of goodwill amortisation.
Marconi also said the net asset value on the balance sheet at the end of September would have been approximately 12-15 per cent higher than reported if IFRS had been adopted for the first half of this financial year.
This was due to an increase in intangible assets, resulting from the cessation of goodwill amortisation and the capitalisation of development costs.
Marconi will prepare its first full financial statements under IFRS for the year ending March 2006 and will issue its quarterly results under IFRS beginning with the quarter ending June 2005.
Meanwhile the company, which completed life-saving financial restructuring in 2003, has announced that its SoftSwitch XCD 5000, which is part of the Impact SoftSwitch platform, has passed all the tests demanded by the Ministry of the Russian Federation for Communications and Information.
The system, if introduced, allowing the innovative voiceover-Internet Protocol solution to be deployed in the Russian Federation at any time. The success in Russia follows the choosing of Marconi by Netia Poland to support its roll out of ISDN broadband services.