- Renault
- 01 July 2025 12:52:56
Source: Sharecast
The company's 35.71% interest in Nissan, which had previously been accounted for using the equity method, will now by classed as a financial asset measured at fair value through equity, estimated on the basis of Nissan's stock price.
The change aligns the value of the investment in financial statements with the value of Nissan's share price, Renault said.
The writedown will be taken as a €9.5bn non-cash hit recognised as 'other operating income and expenses' in Renault's annual results for the year to 30 June 2025.
"This amount corresponds to the difference between the present carrying value of the investment and its estimated fair value based on Nissan's stock price as of June 30, 2025, plus the impact of the recycling of conversion reserves and net investment hedges related to Nissan's equity-accounted securities," the company explained in a regulatory filing.
Going forward, any change in the fair value of the Nissan stake will be directly recognised in equity, with no impact on Renault's net income.
"Although this accounting change implies a significant adjustment to Renault Group's financial statements, it does not change the strategic and operational commitments between Renault Group and Nissan," the company said.