Investor Presentaiton
CONSOLIDATED FINANCIAL STATEMENTS | NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS | NET WORKING CAPITAL
3.5 PROVISIONS
Jan 1-Dec 31, 2022, MEUR
Total provisions at beginning of period
Translation differences
Increase
Provisions used
Reversal of provisions
Companies acquired
Total provisions at end of period
Provision
Provision
Provision for
business
Provision
for warranty
for claims restructuring
for loss
contracts
Other
provisions
58.8
7.4
16.0
31.4
38.6
Total
152.3
-0.6
0.0
0.2
-0.3
0.1
-0.7
19.9
4.2
10.9
32.7
38.0
105.7
-11.8
-1.3
-10.7
-13.9
-8.5
-46.1
-1.5
-2.0
-1.5
-3.7
-25.8
0.6
64.8
8.4
14.9
46.2
43.0
-34.4
0.6
177.4
Non-current liabilities
Distribution of provisions as of Dec 31, 2022
44.8
Current liabilities
132.6
Total
177.4
Accounting principles
Provisions
Provisions are recognized when KONE has a current
legal or constructive obligation as a result of past
event, and it is probable that an outflow of resources
will be required to settle the obligation and a reliable
estimate of the amount of the obligation can be made.
Recognition and measurement of a provision
generally employs managerial estimates on the
probability and the amount of the liability.
Provisions for warranties cover the estimated
liability to repair or replace products still under
warranty at the statement of financial position date.
This provision is calculated based on historical
experience of levels of repairs and replacements.
Provision for claims is recognized when the claim
has been received and it is probable that it will be
settled and the settlement amount can be estimated
reliably.
A provision for business restructuring is
recognized only when a detailed and formal plan has
been established, there is a valid expectation that
such a plan will be carried out and the plan has been
communicated.
Provisions for onerous (loss) contracts are
recognized when it is probable that the costs will
exceed the estimated total revenue or other income
arising from the contract. The probable loss is
recognized as an expense immediately.
Other provisions include for example provisions for
contractual and other obligations arising from
disputes, labor relations or other regulatory matters.
Provision
Provision
Provision for
business
Jan 1-Dec 31, 2021, MEUR
for warranty
for claims restructuring
Provision
for loss
contracts
Other
provisions
Total provisions at beginning of period
67.4
6.3
18.1
28.3
34.5
Translation differences
Increase
Provisions used
Reversal of provisions
Companies acquired
Total provisions at end of period
2.8
0.0
0.3
1.3
0.3
15.0
5.7
14.3
17.4
20.6
-21.7
-1.1
-10.5
-10.7
-3.5
-4.6
-3.5
-6.2
-5.2
-14.3
Total
154.7
4.7
73.0
-47.7
-33.8
0.1
0.4
0.9
1.4
58.8
7.4
16.0
31.4
38.6
152.3
Non-current liabilities
Current liabilities
Distribution of provisions as of Dec 31, 2021
101.4
50.9
Total
152.3
63
63
KONE ANNUAL REVIEW 2022View entire presentation