Update on IFRS

Trinity Mirror PLC
20 June 2005



                               TRINITY MIRROR PLC

                   UPDATE TO IMPACT OF IFRS ON TRINITY MIRROR

Trinity Mirror plc ('the Group') announces an update on its transition to IFRS
('International Financial Reporting Standards'). As part of its 2004 Annual
Report, the Group published a preliminary IFRS Consolidated Balance Sheet and
Income Statement for 2004. This was published for illustrative purposes on the
basis of IFRS, and interpretations thereof, in existence at that time.

Deferred tax on intangible assets

Following further interpretation of IAS 12 'Income Taxes', the Group will amend
its accounting for deferred tax on identified intangible assets on its opening
balance sheet. The current interpretation of IAS 12 requires that a deferred tax
liability is recognised in respect of intangible assets arising on past business
combinations of £474 million. Such deferred tax liability was not included in
the Preliminary Consolidated balance sheet published as part of the 2004 Annual
Report for the period ended 2 January 2005.

This accounting adjustment has no impact on either the Group's cash flows or on
available distributable reserves, and, therefore, has no impact on the Group's
ability to pay dividends.

The Group has grown over the past ten years through the acquisition of a number
of newspaper publishing companies. These acquisitions were mainly structured as
the purchase of shares, and, as a result, for UK GAAP purposes, publishing
rights acquired of £1,580 million have been recognised in the Group consolidated
balance sheet as separately identified intangible assets described as
'publishing rights and titles'.

For IFRS purposes a deferred tax liability is recognised in a business
combination in respect of any identified intangible asset representing the
difference between the fair value of the acquired asset and its tax base.
Recognition of a deferred tax liability in respect of such a difference gives
rise to a corresponding increase in goodwill accounted for in the consolidated
balance sheet. However, the Group has taken the exemption under IFRS 1 'First
Time adoption of International Financial Reporting Standards' whereby past
business combinations need not be restated, and therefore cannot retrospectively
adjust the carrying value of goodwill accounted for in respect of business
combinations entered into prior to the transition date. As the carrying value of
goodwill cannot be adjusted, recognition of the deferred tax liability results
in a corresponding reduction in the Group's consolidated reserves.

Financial Instruments

The Group continues to make progress with respect to accounting for financial
instruments under IAS 39 'Financial Instruments: Recognition and Measurement'
and the revision issued on 16 June 2005 by the IASB (International Accounting
Standards Board). The Group has elected not to apply IAS 39 for the 53 weeks
ended 2 January 2005, and will adopt these standards prospectively from 3
January 2005 onwards.

The key items that will be impacted by IAS 39 are the $602m fixed rate private
placement loan notes, and the cross-currency interest rate swaps related to
these borrowings. The cross currency interest rate swaps ensure that all
interest and principal payments in respect of the loan notes are fully hedged up
until maturity. As these swaps were taken out to hedge the fair value exposure
to the private placement loans, after having assessed the cost implications of
applying hedge accounting, the Group has chosen not to apply hedge accounting
under IAS 39.

Under UK GAAP the Group is required to adopt FRS 26 'Financial Instruments
Measurement' this year which contains the same provisions as IAS 39. The
adoption of IAS 39 under IFRS and FRS 26 under UK GAAP are likely to impact
distributable reserves, which at this stage, is not considered to be material.

The profit impact of adopting IAS 39, on the results for the 26-weeks ended 3
July 2005 will be determined by interest rates and exchange rates prevailing at
the Balance Sheet date. Deferred tax will have to be provided on adjustments
arising from the adoption of IAS 39.

Enquiries

Vijay Vaghela                         020 7293 3000
Group Finance Director

Nick Fullagar                         020 7293 3622
Director of Corporate Communications


                      This information is provided by RNS
            The company news service from the London Stock Exchange