Change to IFRS reporting in 2016
With the 2015 Q4 earnings release, published on February 23, 2016, ASMI announced that as of January 1, 2016, it will report its financial results in accordance with IFRS.
Up until the most recent reporting period, ASMI's primary external and internal reporting has been based on US GAAP. In addition, ASMI issued quarterly reconciliations of net earnings and shareholders' equity as well as (semi) annual financial statements prepared in accordance with International Financial Reporting Standards (IFRS). Following the voluntary delisting from NASDAQ, August 2015, ASMI will migrate to IFRS as its only internal and external reporting standard from January 1, 2016, and will discontinue the use of US GAAP as of the same date. During 2016 comparable results based on US GAAP will be presented, as from 2017 only results based on IFRS will be reported.
The table below shows a condensed P&L in accordance with IFRS for the last eight quarters.
Results 2014-2015 in accordance with IFRS
The main difference between the results reported under IFRS and US GAAP is in Research and development (R&D) expenses. Under US GAAP Research and development costs are expensed as incurred. Under IFRS those development expenses that meet certain criteria are required to be capitalized (IAS 38). Amortization and impairment of such capitalized development costs are included in R&D expenses.
In 2015, R&D expenses amounted to EUR 89.7 million under IFRS. R&D expenses under US GAAP amounted to EUR 95.3 million in 2015.
The difference between the operating result in 2015 under IFRS (EUR 111.1 million) and US GAAP (EUR 106.3 million) is for the largest part explained by the difference in R&D expenses. The same is true for the difference in normalized net earnings in 2015 (EUR 184.5 million and EUR 181.1 million under IFRS and US GAAP, respectively).
Note that R&D expenses in Q4 2015 included a one-off charge related to the write-off of the remaining 450mm assets, as disclosed in the 2015 Q4 earnings report. The impact of this charge was EUR 3 million under US GAAP and EUR 13.4 million under IFRS (total impairment EUR 16.2 million), as disclosed in the Statutory annual report 2015. In 2014, the impairment included in R&D amounted to EUR 0.9 million.
Amortization of development costs included in R&D (excluding impairments) amounted to EUR 11.8 million in 2015 (2014: EUR 10.9 million).
Capitalization of development costs, included in the cash flow statement, amounted to EUR 30.2 million in 2015 (2014: EUR 14.3 million).
The information above is also available in our Statutory annual report 2015 and Q4 2015 earnings report, which can be found on our website