BUWOG (BWO): Application of the newly applicable regulations of IFRS 15 in BUWOG Group - raport 39
UNI - EN REPORT No
39
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39
UNI - EN REPORT No39/39
As laid out in its Annual Report 2016/17, BUWOG Group will, on the basis of the for BUWOG Group mandatory new rules and regulations of IFRS 15, recognise sales of real estate inventories in its business area Property Development proportionally and period-based. Thus, revenues and costs of goods sold as well as contractual assets and liabilities will be recognised period-based and proportional to the duration of the respective project and its respective stage of completion (percentage-of-completion method). For its financial year 2018/19, BUWOG Group expects a positive impact – merely accountingwise - on the Recurring FFO in the amount of approx. EUR 30mn in addition to its previously communicated outlook of EUR 150mn on the basis of the previously applicable accounting practice.
