Ericsson: restates two years of results on new IFRS standard
(CercleFinance.com) - Ericsson said on Friday that it has restated two years of financial results, which has had a positive impact on 2017 numbers, in line with a new accounting standard applied since the beginning of 2018.
The restatement, which affects a few millions of the billions of Swedish kronor the company earned over the period, led to little reaction amongst investors this morning.
The shares are pretty much flat today in Stockholm, losing just 0.1%
The new IFRS 15 standard impacts the timing of the recognition of revenue and costs, while having no impact on cash flow.
Ericsson said the restatement has boosted 2017 revenue by over 4 billion Swedish kronor, also having a positive effect on the group's gross margin and operating losses.
However, for 2016, Ericsson announced that its net income had been reduced by 1.1 billion kronor, while net sales were reduced by 2.3 billion kronor given the application of the new standard.
Copyright (c) 2018 CercleFinance.com. All rights reserved.
The restatement, which affects a few millions of the billions of Swedish kronor the company earned over the period, led to little reaction amongst investors this morning.
The shares are pretty much flat today in Stockholm, losing just 0.1%
The new IFRS 15 standard impacts the timing of the recognition of revenue and costs, while having no impact on cash flow.
Ericsson said the restatement has boosted 2017 revenue by over 4 billion Swedish kronor, also having a positive effect on the group's gross margin and operating losses.
However, for 2016, Ericsson announced that its net income had been reduced by 1.1 billion kronor, while net sales were reduced by 2.3 billion kronor given the application of the new standard.
Copyright (c) 2018 CercleFinance.com. All rights reserved.