Oil giant Royal Dutch/Shell Group said yesterday new accounting rules would knock $4.9 billion (€3.76 billion) off its pension assets but insisted its funds had enough cash to meet liabilities.

Shell said new international financial reporting standards (IFRS) will also push up debt and make reported profits more volatile, yet the company said IFRS would not have an impact on the company's strategy, financial framework or cash flow.

"There is no cash impact or economic consequence from implementing IFRS. Almost all changes are presentational," said Mr David Lawrence, head of group investor relations.

Shell supports the new accounting rules which listed European companies are forced to adopt from 2005. Regulators hope IFRS will make it easier for investors to compare companies' performance across countries and sectors.

The company added it would in future expense share options, rather than the current practice of disclosing options in the notes to the financial statements.

Under the new rules, total net assets on Shell's balance sheet at January 1st, 2004 were expected to fall by about $4.7 billion. - (Reuters)