A change in financial reporting standards means that companies who had previously recorded cloud-based infrastructure as an asset on their books, are being forced to reclassify it as an expense.

IDG reports that NZX-listed companies such as Fletcher Building, The Warehouse, Spark, and NZME are being forced to expense millions of dollars worth of software and cloud-based services when they start reporting results this month.

For some, this could result in a one-off increase in expenses for the year, and therefore lower profits. Whether or not this spooks investors, or simply gets looked through as a change in accounting methods, remains to be seen.


bespoke | open | secure