IFRS vs Non-IFRS
Temenos reports its results using both IFRS and non-IFRS measures as well as providing a reconciliation between the two.
The adjustments that Temenos makes to IFRS figures to reach non-IFRS figures are as follows:
Non-IFRS adjustments
Share-based payment charges
Adjustment made for shared-based payments and social charges.
Deferred revenue write-down
Adjustments made resulting from acquisitions.
Discontinued activities
Discontinued operations at Temenos that do not qualify as such under IFRS.
Acquisition / Investment related finance cost
Mainly relates to acquisition & investment related financing expenses and fair value changes on investments.
Amortisation of acquired intangibles
Amortisation charges as a result of acquired intangible assets.
Restructuring / M&A related costs
Costs incurred in connection with a restructuring programme or other organisational transformation activities planned and controlled by management, or cost related mainly to advisory fees, integration costs and earn out credits or charges. Severance charges, for example, would only qualify under this expense category if incurred as part of a company-wide restructuring plan.
Taxation
Adjustments made to reflect the associated tax charge mainly on deferred revenue write-down and amortization of acquired intangibles, fair value changes on investment and on the basis of Temenos’ expected effective tax rate.