IFRS hits Unilever's turnover
Promotions no longer added to top line for Unilever.
The value of sales from promotional vouchers are no longer to be recorded in Unilever’s overall recorded turnover under IFRS, knocking euro 1bn off the Anglo-Dutch company’s top line.
The world’s biggest maker of food and soap revealed the hit yesterday as it unveiled restated 2004 accounts under the new standards.
Net profits were up, however, unaffected by the change in accounting for promotions. Since companies cannot amortise goodwill under IFRS, net profits were up from just over euro 2bn to almost euro 3bn.