Citycon Oyj - Company Announcement

Citycon amends its accounting policy regarding deferred taxes

CITYCON OYJ                  Stock Exchange Release	      22 August 2014 at
17.30 hrs 

Due to an agenda decision by the IFRS Interpretations Committee, Citycon amends
its accounting policy regarding deferred tax assets and liabilities. 

Under the current policy, Citycon has calculated deferred tax assets and
liabilities of investment properties based on the temporary differences between
the fair value and tax bases of the assets in question. The current policy
assumes the most likely way of such disposal, i.e. by sale of shares in
subsidiaries owning the property, and accounting for the tax consequences
accordingly. 

In the IFRS Interpretations Committee's agenda decision 15-16 July, the
committee decided that the current IFRS standard requires a parent to recognise
the deferred tax based on the difference between the properties' fair value and
residual tax value of the underlying asset. This rule applies even if the
property is disposed by selling the shares of the property company and includes
no assessment of likelihood of such tax consequences. Citycon has amended its
accounting policy to be in line with this agenda decision. The amendment will
be effective as of Q3/2014 reporting. 

The impact of the amendment as of 30 June 2014 would have been EUR 62.8 million
on deferred tax liabilities, EUR -58.7 million on total shareholder's equity
and EUR -4.1 million on profit for the period. More detailed numbers are
presented in the table below. 


Citycon Group, EUR                          30 June 2014                        
 million1)                                                                      
--------------------------------------------------------------------------------
                Defer       Shareholders' equity       Profit for the period2)  
                 red                                                            
                 tax                                                            
                liabi                                                           
                litie                                                           
                  s                                                             
--------------------------------------------------------------------------------
                       Attributable to  Non-controll     Attributable to  Non-co
                        parent company  ing interest      parent company  ntroll
                                                                           ing                                        intere
                                                                            st  
--------------------------------------------------------------------------------
Previous         60.5       -55.9            0.0              -4.6         0.0  
 deferred tax                                                                   
 policy                                                                         
--------------------------------------------------------------------------------
Impact of        62.8       -50.2           -8.6              -2.8         -1.3 
 change                                                                         
--------------------------------------------------------------------------------
New deferred    123.3       -106.1          -8.6              -7.4         -1.3 
 tax policy                                                                     
--------------------------------------------------------------------------------



Citycon Group, EUR                        31 December 2013                      
 million1)                                                                      
--------------------------------------------------------------------------------
                Defer       Shareholders' equity       Profit for the period3)  
                 red                                                            
                 tax                                                            
                liabi                                                           
                litie                                                           
                  s                                                             
--------------------------------------------------------------------------------
                       Attributable to  Non-controll     Attributable to  Non-co
                        parent company  ing interest      parent company  ntroll
                                                                           ing  
                                                                          intere
                                                                            st  
--------------------------------------------------------------------------------
Previous         55.9       -64.0            0.0               8.0         0.0  
 deferred tax                                                                   
 policy                                                                         
--------------------------------------------------------------------------------
Impact of        59.4       -55.1           -8.9               4.3         0.3  
 change                                                                         
--------------------------------------------------------------------------------
New deferred    115.4       -119.1          -8.9              12.3         0.3  
 tax policy                                                                     
--------------------------------------------------------------------------------

1) Includes only the investment property related deferred taxes
2) For the period 1 January - 30 June 2014
3) For the period 1 January - 31 December 2013


The company's policy maintains to realise its shareholding in property
companies by selling the shares rather than the underlying asset. 

The accounting policy amendment does not impact Citycon's result guidance for
2014 (EPRA Earnings and EPRA Earnings per share), but affects the EPRA NAV and
indirect result in EPRA's performance measures. 



Helsinki, 22 August 2014

CITYCON OYJ


For further information, please contact:
Eero Sihvonen, Executive Vice President and CFO
Tel. +358 20 766 4459 or +358 50 557 9137
eero.sihvonen@citycon.com


Citycon Oyj (NASDAQ OMX: CTY1S) is a leading owner, developer and manager of
urban grocery-anchored shopping centres in the Nordic and Baltic region,
managing assets that total approximately EUR 3.3 billion and with market
capitalisation of approximately EUR 1.6 billion. For more information about
Citycon, please visit www.citycon.com 


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