Introduction of new accounting rules, IFRS 9, effect on Qliro Financial Services from 2018
Starting 1 January 2018, new rules for the reporting of financial instruments, IFRS 9, are introduced. They primarily affect Qliro Group through Qliro Financial Services’ credit loss reserves. The reserves will increase by SEK 24 million at the start of 2018 due to the transition to IFRS 9.
According to IFRS 9, reserves for credit losses shall be made directly when a credit is issued, instead of as previously, when there is an indication of increased credit risk. This results in earlier and higher recognition of reserves for credit losses than before, but it will not affect cash flow or underlying credit risk.
The Qliro Financial Services balance sheet year-end 2017 included accumulated reserves of SEK 31 million for future credit losses. In the opening balance of 2018, the reserves will increase by SEK 24 million due to the transition to IFRS 9. Most of the additional reserves stems from credits where at year-end there was no indication of impaired payment ability, and for which no provision had been made in accordance with previous accounting rules.
From 1 January, reserves for projected credit losses will be made directly when credit is issued.
For more information, please visit www.qlirogroup.com or contact:
Niclas Lilja, Head of Investor Relations
+46 736 511 363
ir@qlirogroup.com
About Qliro Group
Qliro Group is a leading Nordic e-commerce group in consumer goods, lifestyle products and complementary financial services. Qliro Group operates CDON.com (the leading Nordic marketplace), Nelly.com and NLY MAN (fashion), Gymgrossisten and Bodystore.com (health and sports) and Qliro Financial Services. In 2016, the group generated SEK 4 billion in revenues. Qliro Group’s shares are listed on Nasdaq Stockholm in the mid cap segment with the ticker symbol “QLRO”.
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