Technopolis announces amendment in accounting policy regarding deferred taxes.
NORDIC BUSINESS REPORT-January 24, 2018-Technopolis announces amendment in accounting policy regarding deferred taxes
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Technopolis Oyj (HEL:TPS1V), an operator of smart business parks, announced on Tuesday that it is amending its accounting policy regarding deferred taxes in accordance with the IFRS Interpretations Committee agenda decision of 15 July 2014 to 16 July 2014 and is restating its financials for 2016 and the first three quarters of 2017 accordingly.
Under the prior accounting policy, Technopolis had calculated the deferred tax assets and liabilities of investment properties based on the temporary difference between the fair value of the shares and the acquisition cost of the real estate company. This former policy was in line with the common market practice with respect to the disposal of properties by means of selling shares in the property company.
Now, according to the IFRS Interpretations Committee's agenda decision, deferred taxes are to be recognised based on the difference between the fair value of the properties and the residual tax value of the underlying assets.
According to Technopolis, it has brought its accounting policy in line with the agenda decision. This change will be effective from the fourth quarter reporting 2017. Also, the financials for fiscal year 2016 and January 2017 to September 2017 will be restated for comparison purposes.
Reportedly, this change will have an impact of a positive EUR25.9m on deferred tax liabilities on 30 September 2017; a negative EUR26.9m on total shareholder's equity as on 30 September 2017 and a positive EUR4.6m on net result for the January 2017 to September 2017 period. This amendment does not have any cash flow effect.
As a result, the restated key ratios for January 2017 to September 2017 are EPS of EUR0.33, as compared with the earlier reported EUR0.30; equity ratio of 42.9%, as compared with the earlier reported 44.4%; equity per share of EUR3.95, as compared with the earlier reported EUR4.10 and EPRA net asset value per share of EUR4.46, as compared withy the earlier reported EUR4.44.
Technopolis clarified that its guidance for 2017 remains unchanged.
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