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."

 

 

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