logo
Plus   Neg
Share
Email

Ericsson: Impairment Testing Results In SEK 14.2 Bln Write-down - Quick Facts

Ericsson (ERIC) announced that the impairment testing that was announced in conjunction with the restated financials according to new segment structure on December 8, 2017, is completed. The result of the impairment testing is a write-down of 14.2 billion Swedish kronor. The company said the majority of goodwill originates from investments made 10 years ago or more, and has limited relevance for Ericsson's business going forward. All impairments are non-cash accounting adjustments.

The company also reported that the lowering of the U.S. corporate income tax rate from 35% to 21% (effective 1 January 2018) requires a revaluation of U.S. deferred tax assets. The current estimated impact will be a non-cash charge to the Group income statement of approximately 1.0 billion kronor that will impact income tax expenses.

The company noted that the impairments and the tax asset revaluation will impact reported net income in the fourth quarter of 2017, but have no impact on Ericsson's cash flow and cash position in the fourth quarter.

For comments and feedback contact: editorial@rttnews.com

Business News

Editors Pick
Amazon Web Services or AWS, the cloud division of Amazon, announced the launch of new virtual computing instances, known as EC2 Mac instances, for Apple app developers. The new Mac instances will help AWS users to run Apple's macOS operating system on Amazon Elastic Compute Cloud or Amazon EC2. EC2 Mac instances will allow customers to run on-demand macOS workloads in the AWS cloud. You stand a chance to win a free mouth-watering and saucy McRib Sandwich from McDonald's, that will be reintroduced on December 2 after being off its menu since 2012. But there is a condition. McDonald's will be giving out a FREE McRib to the first 10,000 entries that post a picture of their cleanly-shaven or baby-smooth face on their public Twitter or public Instagram profile. Amazon's cloud platform Amazon Web Services or AWS announced an extension to its agreement with Zoom Video Communications, Inc. to be its preferred cloud provider. The multi-year agreement is expected to enable Zoom to rise to the challenges brought by the COVID-19 pandemic.
Follow RTT