Nexam Chemical adapts to the International Financial Reporting Standards, IFRS
From January 1, 2016, Nexam Chemical follow the accounting principles in accordance with International Financial Reporting Standards (IFRS). The annual report for 2016, which will be published shortly, will be presented in accordance with IFRS.
The transition to IFRS is reported in accordance with IFRS 1, First-time Adoption of International Financial Reporting Standards. The main rule in IFRS 1 requires that an entity apply all IFRS standards retroactively when determining the opening balance according to IFRS. However, some exceptions to retrospective application are allowed. Nexam Chemical has chosen not to apply any of the exceptions. The opening balance has been set to January 1, 2015.
The balance sheet as of January 1, 2015 has been converted retroactively in accordance with IFRS. The financial figures published in connection with the year-end report have been recalculated according to IFRS for the full year 2016 and for the comparative year 2015.
Effects from adopting IFRS
The effects from adopting IFRS have affected the balanced expenses for product development. Development costs have previously been expensed directly, but according to IFRS, they should be capitalized in the balance sheet if certain criteria’s are met. Research expenses are still expensed directly. As of December 31, 2016, after adopting to IFRS, Nexam Chemicals' capitalized development expenses amounted to SEK 17.1 million (SEK 1.8 million according to previous accounting principles). The result for the full year 2016 has improved by SEK 1.6 million compared to previous accounting principles.
The transition to IFRS has not affected the company's total cash flow nor the underlying business.
The press release contains an appendix in which a “bridge” presents the adjustments between previous accounting principles and the re-calculated figures according to IFRS together with comments on each adjustment.
Note: This press release has been translated from Swedish. The Swedish text shall govern for all purposes and prevail in case of any discrepancy with the English version.
For further information please contact:
Anders Spetz, CEO, +46-703 47 97 00, email@example.com
About Nexam Chemical
Nexam Chemical develops technology and products that make it possible to significantly improve the production process and properties of most types of plastics in a cost-effective manner and with retained production technology. The improved properties include strength, toughness, temperature and chemical resistance as well as service life. The improvements in properties that can be achieved by using Nexam Chemical's technology make it possible to replace metals and other heavier or more expensive materials with plastics in a number of applications. In applications where plastic is already used, Nexam Chemicals products can improve the manufacturing process, reducing material use and enable more environmental friendly alternatives. Example of commercial applications: pipe manufacturing, foam production and high-performance plastics. More information about the business will be found on www.nexamchemical.com. The company´s Certified Adviser is FNCA Sweden AB.