The interim financial statements as of and for the six months ended June 30, 2018 and 2017 were authorized for issue by the Management Board on August 16, 2018.
2. Summary of significant accounting policies
Except as described below, the accounting policies applied in these consolidated interim financial statements are the same as those applied in the Company’s consolidated financial statements as of and for the year ended December 31, 2017, which can be found in its Annual Report on Form 20-F that was filed with the U.S. Securities and Exchange Commission. The changes in accounting policies are also expected to be reflected in the Company’s consolidated financial statements as of and for the year ending December 31, 2018.
The Group has initially adopted IFRS 15, Revenue from Contracts with Customers, and IFRS 9, Financial Instruments, on January 1, 2018. A number of other new standards are effective from January 1, 2018 but these do not have a material effect on the Company’s consolidated financial statements.
- The adoption of IFRS 15 resulted in minor impacts related to the revenue recognition regarding the revenue streams from maintenance as well as extended warranty contracts. Those impacts include immaterial timing differences for revenue recognition related to these types of contracts with customers. The new guidance is not expected to have a material impact to net income (loss) on an ongoing basis.
- The adoption of IFRS 9 resulted in a minor increase in impairment losses recognized on trade receivables.
IFRS 15 Revenue from Contracts with Customers
IFRS 15 establishes a comprehensive framework for determining whether, how much and when revenue is recognized. It replaced IAS 18, Revenue, IAS 11, Construction Contracts, and related interpretations. The Group has adopted IFRS 15 using the cumulative effect method, with the effect of initially applying this standard recognized at the date of initial application (i.e. January 1, 2018). Accordingly, the information presented for 2017 has not been restated – i.e. it is presented, as previously reported, under IAS 18, IAS 11 and related interpretations.
The following table summarizes the impact, net of tax, of transition to IFRS 15 on retained earnings as of January 1, 2018.
| Impact at January 1, 2018 | Impact on adopting IFRS 15 at January 1, 2018 | |
| (€ in thousands) | ||
| Retained earnings | (100) | |
| Recognition of revenues from maintenance and extended warranty contracts | (100) |
The following table summarizes the impacts of adopting IFRS 15 on the Company’s consolidated interim consolidated statement of financial position as of June 30, 2018 and its consolidated interim statement of comprehensive loss for the six months then ended for each of the line items affected.
| Amounts without | ||||||
| 06/30/2018 | As reported | Adjustments | adoption of IFRS 15 | |||
| (€ in thousands) | ||||||
| Total assets | 64,837 | (248) | 64,589 | |||
|
Current assets |
35,781 | (248) | 35,533 | |||
| Trade receivables | 4,211 | (248) | 3,963 | |||
| Total equity and liabilities | 64,837 | (248) | 64,589 | |||
|
Current liabilities |
8,592 | (357) | 8,235 | |||
| Deferred income | 37 | 245 | 282 | |||
| Contract liabilities | 2,558 | (2,558) | -- | |||
| Other liabilities and provisions | 1,756 | 1,956 | 3,712 | |||
|
Equity |
39,633 | 109 | 39,742 | |||
| Accumulated deficit | (41,958) | 109 | (41,849) | |||
| Amounts without | ||||||
| 06/30/2018 | As reported | Adjustments | adoption of IFRS 15 | |||
| (€ in thousands) | ||||||
| Revenue | 10,314 | 9 | 10,323 | |||
| Impairment loss on trade receivables | (8) | 8 | -- | |||
| Operating loss | (4,457) | 17 | (4,440) | |||
| Loss before income taxes | (4,317) | 17 | (4,300) | |||
| Net loss | (4,330) | 17 | (4,313) | |||
| Total comprehensive loss | (4,421) | 17 | (4,404) | |||
