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:
Deferred revenue write-down
- Adjustments made resulting from acquisitions
- Discontinued operations at Temenos that do not qualify as such under IFRS
Acquisition related charges
- Relates mainly to advisory fees and integration costs
Amortisation of acquired intangibles
- Amortisation charges as a result of acquired intangible assets
- Costs incurred in connection with a restructuring plan implemented and controlled by management
- Severance charges, for example, would only qualify under this expense category if incurred as part of a companywide restructuring plan
- Adjustments made to reflect the associated tax charge relating to the above items
It should be cautioned that the supplemental non-IFRS information presented by Temenos is subject to inherent limitations. It is not based on any comprehensive set of accounting rules or principles and should not be considered as a substitute for IFRS measurements.
Also, Temenos' supplemental non-IFRS financial information may not be comparable to similarly titled non-IFRS measures used by other companies.