SRV GROUP PLC STOCK EXCHANGE RELEASE 26 APRIL 2018, AT 8.15 AM
The impact of the new reporting standards on SRV’s financial reporting and restated financial figures for 2017
The SRV Group Plc has applied the new standard IFRS 15 Revenue from Contracts with Customers from 1 January 2018 and has restated financial figures for 2017 in order for them to be comparable. The first interim report for 2018 to be published on 26 April will be prepared in accordance with the new standards.
IFRS 15 affects the timing of sales revenue and expenses recognition and in some cases items presented in the income statement. The company has studied the impact of the new standard, and the introduction of the new standard will have no significant effects on the financial information presented by the company.
The project types identified in the study mainly constitute a single integrated entity that is handled as a single performance obligation. The study identified that development and developer-contracted projects may include a separate financing component. In Group projects where the average financing period is more than one year, the treatment procedure for a substantial financing component will apply with regard to factoring. In the comparison year, the change in the treatment procedure results in a reduction of EUR 1.7 million in revenue and a decline in interest expenses on financial items. The introduction of the new standard has no material impact on cash flow statement or balance sheet items.
A summary of the effects of the new standard on the company’s comparison year figures is presented in the table below. Restated annual and quarterly figures are presented in the tables appended to this release. Further information on the adoption of IFRS 15 and its impact can be found in SRV’s Financial Statements 2017, pages 26 and 27.
|(EUR million)||Restated 1-12/2017||Reported 1-12/2017||Change|
|Operative operating profit||27.0||28.7||-1.7|
|Financial income and expenses, Total||-10.7||-12.4||1.7|
|Profit before taxes||4.6||4.6|
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