Thursday, 15 May 2014

SAP Expects a Significant Impact of New International Accounting Standard

SAP Expects a Significant Impact of New International Accounting Standard
The new international accounting standard for revenue recognition (IFRS 15), who after years of deliberations by the International Accounting Standards Board (IASB ) and the U.S. standard setter Financial Accounting Standards Board (FASB ) is nearing publication, according to estimates by SAP a significant impact bring to their own industry with it. 

"The consequences for the software industry are essential", the designated Chief Financial Officer Luka Mucic says in the interview, the stock market newspaper. The existing provisions of U.S. GAAP, which are also observed by Software Company outside the United States for better comparability with U.S. competitors in many cases, would have been given a very narrow and sometimes extremely conservative corset. The new standard is much less conservative. "This means that software companies must not only implement the new rules, but also determine how they want to deal with the new flexibility.”

Other industries, particularly if they offer various goods and services under a single contract, will, according to experts from the be affected by the new standard. SAP, which is often sold with their software and maintenance services, had been involved from the beginning in the development of the new standards, the acting CFO Werner Brandt also says in the interview, the stock market newspaper. The new standard will lead to significant changes in the revenue recognition of the Dax Group. "We are already for some time in analyzing these changes and this analysis will now conclude on the basis of the final version.” The 60 -year-old Brandt, who stands at the head of the financial department of SAP since 2001, the end of June adopted in retirement. For him, takes over the 18-year younger Luka Mucic, who will be in a DAX-listed companies from 1 July of the current youngest CFO.