Saint-Gobain to Apply IFRS 16 Accounting Standard

   By Patrick Costello 
 

Compagnie de Saint-Gobain SA (SGO.FR) said Monday that it will begin applying the new IFRS 16 accounting standard, retroactive to Jan. 1, 2018.

The French construction-materials company said it expects the impact of the new standard at the Jan. 1, 2019, transition date will be 3.01 billion euros ($3.42 billion) on debt and EUR2.74 billion on right-of-use assets.

The shift to IFRS 16 also means the company will restate its 2018 financial statements, it said.

Saint-Gobain said it expects the new standard will result in earnings before interest, taxes, depreciation and amortization increasing by EUR787 million for 2018, while operating income will increase by EUR85 million.

IFRS 16 aligns the accounting treatment of operating leases with that of finance leases, and its impact on Saint-Gobain's financial statements arises chiefly from leases of property assets, according to the company.

Write to Patrick Costello at [e-mail].

(END) Dow Jones Newswires

July 01, 2019 02:51 ET (06:51 GMT)

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