IFRS Adoption to Increase Nestle's Profit Margins

Nestle will change its sales recognition policy to conform with the generally accepted interpretation of International Financial Reporting Standards (IFRS).


Effective January 1, 2011, the change is expected to slash reported sales by 15%.


Citing Nestle, Reuters says expenses such as "discounts and promotions for retailers will in future be deducted from the proceeds of sales, leading to the reduction in reported sales but an increase in profit margins."





Suggested Articles

Some of you might have already been aware of the news that Questex—with the aim to focus on event business—will shut down permanently all media brands in Asia…

Some advice for transitioning into an advisory role

Global risks are intensifying but the collective will to tackle them appears to be lacking. Check out this report for areas of concern