The accounting principles applied in each financial period are presented in the notes to the consolidated financial statements of the corresponding year and can be found in the Annual Review of the year in question. KONE’s accounting principles are based on the International Financial Reporting Standards (IFRS) as adopted by the European Union, observing the standards and interpretations effective on the date of the financial statements.
The accounting principles 2018 and more information can be found in the Annual Review 2018.
In 2018, KONE has adopted new accounting standards issued by the International Accounting Standards Board, IFRS 15, Revenue from Contracts with Customers, and IFRS 9, Financial Instruments, effective on January 1, 2018.
The most significant impact from the implementation of the IFRS 15 is the application of the percentage of completion revenue recognition method also in the volume new equipment and modernization businesses. In these businesses, revenue has previously been recognized upon the handover of the project to the customer, while long-term major projects have already been recognized under the percentage of completion method. With the new IFRS 15 principles, revenue is gradually recognized for all construction contracts at KONE based on the progress from the point when materials arrive at the customer site until the handover of the project. The implementation of IFRS 9 did not have a material impact in KONE’s consolidated financial statements.
IFRS 15 and IFRS 9 restated financials
KONE has adopted the new IFRS 15 and IFRS 9 effective January 1, 2018. The restated main tables can be found below.
On Thursday, November 16, 2017 an IFRS 15 webcast was organized, presented by our Corporate Controller Roberto Molteni. The aim of the call was to discuss the impacts of IFRS 15 on KONE’s financials. At the end of the call, participants had the chance to ask questions. You can see the presentation here and the recording of the webcast here.