Due to the Group structure, Verkkokauppa.com reports the parent company separately in accordance with Finnish Accounting Standards (FAS) – The Group is reported in accordance with IFRS
Verkkokauppa.com Oyj Stock Exchange Release 20 December 2022 at 8:30am EET
Due to the Group structure, Verkkokauppa.com will report the parent company separately, and in accordance with Finnish Accounting Standards (FAS). Verkkokauppa.com has formed a Group since completing an acquisition on 1 April 2022.
The change does not affect the Verkkokauppa.com Group’s reporting. The Group reports its year-end financial statements bulletin and financial statements for the financial period ending on 31 December 2022 in accordance with (IFRS), and for the first time, the parent company reports separately in accordance with FAS.
Attached to this release are the unaudited interim bridge calculations according to FAS from the parent company’s income statement and balance sheet for the full year of 2021.
Verkkokauppa.com will publish its Financial Statements Bulletin for 2022 on 9 February 2023.
For more information, please contact:
CFO, Verkkokauppa.com Oyj
Tel. +358 10 309 5555
Head of Investor Relations and Corporate Communications
Tel. +358 40 671 2999
The unaudited interim bridge calculations in accordance with FAS from the parent company of Verkkokauppa.com’s income statement and balance sheet for the full year of 2021.
|IFRS 31 December 2021||FAS adjustments requirement||FAS 31 December 2021|
|Revenue||574 513 965||574 513 965|
|Other operating income||921 848||921 848|
|Materials and services||-483 322 953||3b)||59 749||-483 263 203|
|Employee benefit expenses||-36 570 478||1b)||1 538 289||-35 032 189|
|Depreciation and amortization||-4 983 439||2)||3 649 630||-1 333 809|
|Other operating expenses||-30 263 077||1b), 2)||-6 572 454||-36 835 531|
|Operating profit||20 295 867||-1 324 786||18 971 081|
|Finance income||5 629||5 629|
|Finance costs||-1 352 447||2)||1 197 715||-154 732|
|Net financial costs||-1 346 818||1 197 715||-149 102|
|Profit before income taxes||18 949 049||-127 071||18 821 978|
|Taxes in the accounting period||-3 795 968||-3 795 968|
|Taxes from current accounting periods||261||261|
|Income taxes||-60 205||5)||60 205||0|
|Income taxes total||-3 855 912||60 205||-3 795 706|
|Profit for the period||15 093 138||-66 866||15 026 272|
|IFRS balance on 31 December 2021||FAS adjustments requirement||FAS balance on 31 December 2021|
|Property, plant and equipment||1 363 597||1 363 597|
|Right-of-use assets||5 214 014||5 214 014|
|Equity investments||15 776 459||2)||-15 776 459||0|
|Deferred tax assets||266 484||3a)||-265||266 219|
|Trade receivables||1 289 163||5)||-1 289 163||0|
|Loan receivables||3 816 537||3 816 537|
|Receivables from companies of the same group, short-term|
|Other non-current receivables||424 764||424 764|
|Non-current assets, total||28 151 019||-17 065 887||11 085 132|
|Inventories||87 802 963||3b)||509 341||88 312 304|
|Trade receivables||23 123 801||23 123 801|
|Receivables from companies of the same group, long-term|
|Other receivables||3 699 415||3 699 415|
|Income tax receivables|
|Accrued income||8 627 205||8 627 205|
|Cash and cash equivalents||20 917 082||20 917 082|
|Current assets, total||144 170 466||509 341||144 679 807|
|Total assets||172 321 485||-16 556 546||155 764 939|
|Share capital||100 000||0||100 000|
|Treasury shares||-1 610 616||1c)||11 173||-1 599 443|
|Invested unrestricted equity fund||25 937 990||0||25 937 990|
|Retained earnings||-3 837 936||1), 2), 3), 4), 5)||3 114 194||-723 742|
|Profit for the period||15 093 138||1), 2), 3), 4), 5)||-66 866||15 026 272|
|Total equity||35 682 576||3 058 501||38 741 077|
|Lease liabilities||16 104 849||2)||-16 104 849||0|
|Liabilities to credit institutions|
|Deferred tax liabilities|
|Liabilities to companies of the same group, long-term|
|Provisions||895 743||895 743|
|Non-current liabilities, total||17 000 591||-16 104 849||895 743|
|Lease liabilities||4 034 477||2)||-4 034 477||0|
|Liabilities to credit institutions|
|Advance payments received||5 760 991||5 760 991|
|Trade payables||77 609 210||77 609 210|
|Liabilities to companies of the same group, short-term|
|Other current liabilities||10 717 909||1a)||-756 967||9 960 942|
|Accrued liabilities||19 777 727||1a), 2), 4)||1 281 246||21 058 973|
|Income tax liabilities||1 738 004||0||1 738 004|
|Current liabilities, total||119 638 319||-3 510 198||116 128 120|
|Total liabilities||136 638 910||-19 615 047||117 023 863|
|Total equity and liabilities||172 321 485||-16 556 546||155 764 939|
Outlined below are the accounting policies that have had the most significant effects on the income statement, and statement of financial position statement of Verkkokauppa.com Oyj due to the adoption of FAS.
1. Changes in classification
a) Classification changes related to the balance sheet.
b) Voluntary personnel costs
The company has presented in the IFRS financial statements that all personnel expenses included in employee benefits are presented as part of personnel expenses.
In FAS, all voluntary personnel expenses are included in other business expenses.
c) Own shares
In previous years, the company has recorded transaction costs resulting from the acquisition cost of its own shares in equity as part of the IFRS acquisition cost of the shares.
In FAS, the acquisition costs of the company's own shares are treated as expenses in the income statement.
The company is, according to IFRS, the company must record in the balance sheet of all lease agreements the equivalent of the present value of the minimum rents at the beginning of the lease agreement asset and liability. The standard includes a practical aid for recording, according to which low-value and short-term (less than 12 months) leases may not be recorded. Verkkokauppa.com Corporation has decided to apply both means of assistance. Asset and liability based on leasehold the amount is calculated by discounting future minimum rents. With the processing according to IFRS The rental expense shown in the FAS is compensated by depreciation of the asset. In addition, it is recorded the interest expenses of the lease debt, which are presented in the financial expenses of the income statement. As far as lease agreement payments have been allocated to accrued liabilities, they have been transferred as part of the lease agreement debt.
In FAS, the income statement records the costs of leases according to the passage of time to other business expenses. At the end of the accounting period, the rental obligations are reported on the balance sheet as external items as part of liability commitments.
3. Financial instruments
a) Classification of equity investments at fair value through other comprehensive income
IFRS requires the classification of financial assets based on the business model. The company is IFRS evaluated the business model of equity investments and made an irrevocable decision classify the equity investments in question at fair value through other comprehensive income. In FAS, the company treats investments initially at acquisition cost.
According to IFRS, changes in the fair value of investments are recorded in other comprehensive income. Equity in connection with the transfer of conditional investments, related to accumulated other items of comprehensive income the included balance is transferred to retained earnings.
b) Annual credits for inventory
In accordance with IFRS, when determining the purchase costs of inventory, it is minus annual credits. In accordance with FAS, not all annual credits have been allocated to the acquisition cost of the inventory.
In this regard, the company must adjust the book value of the warehouse and the book adjusted deferred taxes. In the income statement, the effect is reflected in the materials and services item, in the change of current assets and as a change in deferred taxes.
4. Other adjustments
In 2021, Verkkokauppa.com had two share-based incentive plans for the CEO and members of the Management Team, the Matching Share Plan 2018–2020 and the Performance Matching Share Plan 2020–2022.
In 2021, Verkkokauppa.com handed over the rewards according to the first commitment period of the Additional Share Program 2018–2020 in a directed free share issue.
Share-based incentive plans has been classified in the IFRS reporting as an equity-settled transaction, because Verkkokauppa.com Oyj will deduct, on behalf of the employee, from the share award such number of shares which covers taxes and tax-like charges paid in cash.
This equity-settled shared-based payment was measured at grant date fair value and recognized as an expense and in retained earnings during its validity period.
In FAS, the share-based payment is recognized as an expense and accrued liabilities.
5. Deferred tax assets and liabilities
The company has recorded an IFRS deferred tax asset related to lease agreements and inventory for correction. The company will not record deferred taxes for these items in the FAS financial statements.
Verkkokauppa.com empowers its customers to follow their passion by providing a wide product assortment of around 90,000 products. Verkkokauppa.com Oyj serves its retail and corporate customers through its webstore, megastores, kiosk and network of collection points as well as fast deliveries and various services. As Finland’s most popular and most visited domestic online retailer, its deliveries cover around 75 percent of the Finnish population within the next day. The Company has four megastores: in Oulu, Pirkkala, Raisio, and Helsinki, where its headquarters is also located. Verkkokauppa.com employs more than 750 people and its shares are listed on the Nasdaq Helsinki stock exchange with the ticker VERK.