Amer Sports has adopted the new IFRS 15 standard ‘Revenue from Contracts with Customers’ as of January 1, 2018. As a result of the adoption, Amer Sports has restated the 2017 figures by using the full retrospective method.

The main impacts of the restatement due to the adoption of IFRS 15 are:

  • increase of €24.1 million in net sales for the year 2017
  • decrease of €0.5 million in EBIT for the year 2017
  • decrease of €0.4 million in net profit for the year 2017
  • decrease of €2.1 million in total assets as of December 31, 2017
  • increase of €0.5 million in current liabilities as of December 31, 2017
  • decrease of €2.2 million as an accumulated restatement in retained earnings as of January 1, 2017, including the impact of the harmonization of the accounting principles

The impact of IFRS 15 on the quarterly consolidated income statements, statements of comprehensive income, balance sheets and cash flow statements as well as net sales per operating segments, geographic breakdown of net sales and EBIT excluding items affecting comparability by operating segment are disclosed in the attachment.

The restated financial information is unaudited.

IFRS 15 Revenue from Contracts with Customers: The new standard outlines the accounting requirements for when and how much to recognize revenue from the sale of goods and rendering of services based on a new five-step framework. Revenue is recognized at an amount that reflects the consideration to which the entity expects to be entitled in exchange for transferring promised goods or services to a customer when the control transfers to the customer either over time or at a point in time. IFRS 15 replaces the revenue standards and interpretations including e.g. IAS 11 Construction contracts, IAS 18 Revenue and IFRIC 13 Customer Loyalty Programs. Amer Sports has adopted the standard using the full retrospective approach. The accumulated effect of the retrospective application is recognized by adjusting the opening balance of the retained earnings for the earliest comparative period presented, which for Amer Sports is the financial period beginning on January 1, 2017. The key impacts arising from the adoption of the new standard are described below.

(I) Principal versus agent consideration
Amer Sports provides freight services in all the company’s operating segments and installation services in the company’s Fitness segment. Previously the revenue from both the freight and installation services have been netted against the related expenses. As Amer Sports has the primary responsibility of providing the freight and/or installation service towards the customer, choosing the pricing of the service and using third party service providers only to deliver the services, Amer Sports acts as a principal. As a result, both freight and installation revenue, as well as the related expenses, are recognized as gross amounts. This leads to increased net sales fully offset by increased cost of goods sold leaving no impact on EBIT.

(II) Transfer of control
As a result of more detailed requirements from IFRS 15 with respect to the transfer of control, Amer Sports has harmonized and sharpened its accounting principles and practices. The impact of this harmonization in the consolidated financial statement was not material in 2017.

(III) Other IFRS 15 areas
The other identified IFRS 15 areas that are applicable to Amer Sports business are trade discounts, customer sales with right of return, customer loyalty campaigns, gift card breakage and extended payment terms. The impact of these adjustments on the consolidated income statement was not material in 2017.