New accounting standards lead to amended presentation of consolidated financial statements

Stuttgart, Mar 27, 2018
  • Transition to accounting standards IFRS 9 and IFRS 15 in financial year 2018 leads to amended presentation of comparable prior-year EBIT and revenue at Group level.
  • New standards require formal changes in the outlook for 2018 for Mercedes-Benz Cars and Daimler Buses.

Stuttgart, Germany – As of financial year 2018, Daimler AG will adjust its financial reporting to comply with the new standards IFRS 9 and 15. The introduction of IFRS 15 effective January 1, 2018 results in changes to revenue recognition. Daimler measured its EBIT and revenue for financial year 2017 according to the previously valid accounting standards and presented those amounts in its 2017 consolidated financial statements. To improve comparability with the amounts to be reported for financial year 2018, Daimler AG will additionally present the prior-year figures that would have resulted from application of the new IFRS 15 at that time. The new standard IFRS 9 affects the recognition and measurement of financial instruments, which leads to minor adjustments to the presentation of the previously reported figures. The changes described also have an impact on Daimler’s outlook for 2018.

Adjusting for the new standards results in Group revenue in 2017 of €164.2 billion (previously €164.3 billion) and Group EBIT in 2017 of €14.3 billion (previously €14.7 billion). The change leads to lower revenue and consequently to lower earnings of the divisional results of operations of Mercedes-Benz Cars, especially in the first quarter 2017. This is due to utilization of the legal simplification stating that certain contracts concluded before January 1, 2017 do not have to be reassessed according to the new IFRS 15 standard.

The adjusted prior-year figures result in formal changes to the Group’s outlook for the year 2018. For each of Mercedes-Benz Cars and Daimler Buses, Daimler anticipates EBIT slightly above the prior-year level. The outlook for the other divisions’ earnings remains unchanged.

Overview of adjusted key figures (in millions of euros):

 

Revenue

EBIT

In millions of euros

2017

(as reported)

2017

(adjusted)

2017

(as reported)

2017

(adjusted)

Mercedes-Benz Cars

94,695

94,351

9,207

8,843

Daimler Trucks

35,707

35,755

2,380

2,383

Mercedes-Benz Vans

13,164

13,161

1,181

1,147

Daimler Buses

4,351

4,524

243

281

Daimler Financial Services

23,775

23,776

1,970

1,970

Reconciliation/Eliminations

-7,362

-7,413

-299

-276

Daimler Group

164,330

164,154

14,682

14,348

Further information on the changeover to IFRS 15 can be found at: daimler.com/ir/IFRS15

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