Indirect end customer financing transactions, which were previously recognised as sales transactions, are now recognised as leases in accordance with IFRS 15 and IFRS 16. Leased assets as at 1 January 2017 increased by €714.2 million to €1,143.9 million as a result. On the other side of the statement of financial position, there was a €532.7 million rise in deferred revenue, of which €341.7 million was classified as Other non-current liabilities and €191.1 million as Other current liabilities. Furthermore, the change in the reporting of indirect end customer financing resulted in additional residual value obligations of €335.9 million being recognised under Liabilities from financial services (non-current Liabilities from financial services increased by €258.8 million and current Liabilities from financial services by €77.2 million as at 1 January 2017). Liabilities from financial services were reported as a separate line item for the first time and include liabilities from financial services used to fund the long-term leasing business, which had previously been reported under Other current financial liabilities (reclassification of €8.3 million as at 1 January 2017).
In accordance with IFRS 16, procurement leases that were previously recognised as operating leases but not shown in the statement of financial position are recognised as right-of-use assets under Other property, plant and equipment; liabilities from procurement leases are now reported under Other financial liabilities. The KION Group exercises the option not to recognise right-of-use assets and liabilities from procurement leases for low-value procurement leases and for procurement leases that have a lease term of less than twelve months. Other property, plant and equipment rose by €240.8 million to €919.1 million as at 1 January 2017. Accordingly, Other non-current financial liabilities increased by €207.0 million and Other current financial liabilities increased by €55.6 million. Overall, the first-time adoption of IFRS 16 in regard to the KION Group’s leasing arrangements led to a reduction in equity after taking deferred taxes into account of €160.8 million as at 1 January 2017.