Electrolux AB Restates Figures for FY 2012 Following Change in Pension Accounting Standards

Monday, 25 Mar 2013 09:00am EDT 

Electrolux AB announced that it has decided to apply the amended standard for pension accounting, IAS 19 Employee Benefits, as of January 1, 2013. The main change is that the option to use the corridor approach – previously applied by Electrolux – has been removed. Opening balances for 2013 and reported figures for 2012 have been restated to enable comparison. All historical unrecognized actuarial gains or losses will be included in the measurement of the net defined benefit liability. This increases the net pension liability for 2012 by SEK 4,618 million and reduces equity by SEK 4,098 million. Operating income for 2012 is reduced by SEK 150 million, which is a result of interest costs and return on pension liabilities and -assets no longer being reported within operating income and that amortization of the actuarial losses no longer are used. Financing costs for the net pension liability will be reported within the financial net which deteriorates by SEK 174 million. Income for the period after tax declines by SEK 234 million. The restatement has no impact on the cash flow. 

Company Quote

26 Jan 2015