Telia Company restates 2017 financials
Telia Company has restated the 2017 financial information following the implementation of the new revenue standard IFRS 15 as well as to reflect changes in capitalized labor costs.
Due to implementation of the new accounting standard for revenues “IFRS 15 Revenue from contracts with customers”, effective from January 1, 2018, Telia Company has restated the comparative financial information for 2017 using the full retrospective method. The adoption of the new standard had a positive equity effect of SEK 1.2 billion per the transition date January 1, 2017 and per December 31, 2017 , respectively. The increase was mainly related to capitalization of costs for obtaining contracts, which previously were expensed as incurred. The implementation had a limited impact on the consolidated statements of comprehensive income with a negative effect on net sales of SEK 0.1 billion and a positive effect on EBITDA, operating income and net income of SEK 0.1 billion. There was no material effect on net income from discontinued operations.
The financial information for 2017 has also been restated to reflect the discovery of certain classification errors referring to capitalized work by employees recognized as property plant and equipment by SEK 232 million and intangible assets by SEK 133 million. The correction resulted in a reclassification between personnel expenses (increase) and impairment losses (decrease) and a reclassification between cash flow from operating activities (decrease) and investing activities (increase) for the full year 2017. The reclassifications have no effect on costs by function, operating income, net income, free cash flow, operational free cash flow or total cash flow for the full year 2017 or carrying values of the related assets per December 31, 2017. The impact on EBITDA from the adjustment for capitalized expenses was negative by SEK 365 million for 2017. The restatement of historical figures has been made to better illustrate the trends between periods.
Refer to www.teliacompany.com for a financial and operational data file updated for above restatements.