NCC’s assets and liabilities will also be affected by the introduction of IFRIC 15. Interest-bearing liabilities will be higher than previously because ongoing construction of housing in Swedish tenant owner associations and Finnish housing companies will have to be recognized in NCC’s balance sheet. Accordingly, reported net indebtedness will increase. However, the changes will have no impact on NCC’s financial position
and risk.
NCC’s financial objective for the debt/equity ratio is being adapted and increased from 1.0 to 1.5, which means that net indebtedness must never exceed 1.5 times
shareholders’ equity at the end of any quarter. The objective for the return on shareholders’ equity remains unchanged at 20 percent after tax. The current objective for cash flow has been discontinued, due to the limitations on the
debt/equity ratio.