APPLICATION OF IFRS 15 NORM
The Group is applying the full retrospective approach as of 1 July 2018 in transitioning to the new standard.
As noted in the Half-year financial report at 31 December 2017, there is no expected impact on Profit from Recurring Operations (PRO) or on revenue recognition standards, based on preliminary analysis.
Two mains topics have been identified with the following impacts:
• services paid to direct or indirect customers on visibility or promotional arrangements: reclassification from Advertising and Promotion expenses to a decrease in Net Sales;
• third party manufacturing in India: increase in Net Sales and Cost of Goods following the analysis of agent vs principal considerations.
The non-audited retrospective application on comparative year FY18 can be found below and will also be available on our website: www.pernod-ricard.com
Sales Analysis by Region, pre- and post- IFRS 15 restatement
Profit from Recurring Operations by Region, pre- and post-IFRS 15 restatement