Saint-Gobain to Apply IFRS 16 Accounting Standard
01 July 2019 - 5:06PM
Dow Jones News
By Patrick Costello
Compagnie de Saint-Gobain SA (SGO.FR) said Monday that it will
begin applying the new IFRS 16 accounting standard, retroactive to
Jan. 1, 2018.
The French construction-materials company said it expects the
impact of the new standard at the Jan. 1, 2019, transition date
will be 3.01 billion euros ($3.42 billion) on debt and EUR2.74
billion on right-of-use assets.
The shift to IFRS 16 also means the company will restate its
2018 financial statements, it said.
Saint-Gobain said it expects the new standard will result in
earnings before interest, taxes, depreciation and amortization
increasing by EUR787 million for 2018, while operating income will
increase by EUR85 million.
IFRS 16 aligns the accounting treatment of operating leases with
that of finance leases, and its impact on Saint-Gobain's financial
statements arises chiefly from leases of property assets, according
to the company.
Write to Patrick Costello at patrick.costello@dowjones.com.
(END) Dow Jones Newswires
July 01, 2019 02:51 ET (06:51 GMT)
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