Reporting Q & A

Read more about Non-IFRS measures, XBRL reporting, currency effects, and more

  • Which accounting standard does SAP use for its annual financial statements?

    Since 2008, SAP prepares its consolidated financial statements in accordance with International Financial Reporting Standards (IFRS) endorsed by the European Union (EU). In addition to providing the disclosures required under IFRS, the notes to our statements contain a great deal of additional detail, which we provide voluntarily.

  • When will SAP announce its next quarterly figures?

    Announcement dates are listed on Events and Presentations

  • In what currency are SAP´s results reported?

    SAP is a European company, so our results are reported in euros.

  • Cloud Reporting
  • What are the most important cloud reporting metrics for SAP and how are they defined and calculated?

    The basis for most of our cloud metrics are non-IFRS cloud subscriptions and support revenue and non-IFRS cloud-related professional services and other service revenue. The two revenue figures can be found directly on the face of our Income Statement. In addition to those we report the non-IFRS deferred cloud subscriptions and support revenue which is a subset of the deferred revenue found on our balance sheet.

  • What are the non-IFRS calculated billings?

    The non-IFRS calculated billings is the most important metric for cloud performance. This shows the business completed in the quarter plus the existing business that continues to renew. The result is the amount of non-IFRS cloud subscriptions and support revenue that we will see in the Income Statement in future periods.

    Non-IFRS calculated billings is calculated as follows: the total of a period's cloud subscriptions and support revenue and of the respective period's change in the deferred cloud subscriptions and support revenue balance.

  • What is the annual revenue run rate?

    The annual revenue run rate shows the absolute size of SAP’s cloud business. The annual revenue run rate is the total of the current quarter’s non-IFRS cloud subscriptions and support revenue plus non-IFRS cloud-related professional services and other service revenue multiplied by 4.

  • What is network revenue?

    Although the network revenue is booked along with other cloud revenue in cloud subscriptions and support revenue on the income statement there a two important metrics that help track the network business:

    We track the number of connected companies to our cloud-based business trading network as well as the trailing twelve month network spend volume, which is the total value of purchase orders transacted on the network in the trailing 12 months.

  • Non-IFRS
  • Why does SAP report Non-IFRS financial results?

    SAP reports its financial results in accordance with IFRS and additionally discloses certain financial results on a non-IFRS basis. Certain non-IFRS measures (for example non-IFRS revenue, non-IFRS operating profit and non-IFRS operating margin) are provided both, on a nominal currency basis (as reported basis) and on a constant currency basis.

  • XBRL
  • Read more about the XML based computer software language for the electronic communication of business and financial data.

  • What is XBRL?

    XBRL (eXtensible Business Reporting Language) is an XML-based computer software language for the electronic communication of business and financial data. It is an open standard for financial reporting and provides a unique, electronically readable tag for each individual disclosure item within the financial statements. Each item on the financial statements is tagged with such individualized information, thus permitting the automatic exchange and reliable extraction of financial information. XBRL is not an accounting standard; it is simply a standard for providing an identifying tag for business and financial data. XBRL-tagged data can be read by any software that includes an XBRL processor and thus can be easily transferred between computers.

  • What XBRL information do we provide?

    Due to our listing in the US, we prepare IFRS Consolidated Financial Statements in accordance with the requirements of the US Securities and Exchange Commission (SEC). Going forward, the SEC is expected to require these consolidated financial statements (form 20-F) to be filed in an XBRL format. Therefore, SAP has decided to publish the consolidated financial statements in XBRL format already. Starting with the 2009 IFRS consolidated financial statements; we publish this information in XBRL format, including the block-tagged notes to the consolidated financial statements.

  • How did we prepare our XBRL files?

    We prepared our XBRL files using the application SAP BusinessObjects XBRL Publishing by UBmatrix. Further information regarding this product can be found at

  • What XBRL taxonomies do we use?

    The tags used in XBRL data are contained in taxonomies. Taxonomies are dictionaries that define the specific tags that are used for individual items of data (such as "revenue"), their attributes and their interrelationships. Since 2011, we prepare our XBRL data based on the 2011 XBRL taxonomy for International Financial Reporting Standards (IFRSs) developed and maintained by the IASC Foundation. Previously, the 2010 and 2009 XBRL taxonomy was used. Going forward, we will continue to use the most up to date XBRL taxonomy available.

  • What is needed to view the XBRL files?

    To view the XBRL data in a readable format, the XBRL files must be loaded into an XBRL viewer. Such a viewer is available for free, for example, on the website of the SEC. For the convenience of the reader, we have also included an HTML version of our XBRL files.

  • Where can I find SAP’s most recent XBRL files?

    The most recent XBRL files are available in the section Financial Reports.

  • Currency Effects
  • Why does SAP provide constant currency period-over-period numbers?

    We believe it is important for investors to have information that provides insight into our sales. Revenue measures determined under IFRS provide information that is useful in this regard. However, both sales volume and currency effects impact period-over-period changes in sales revenue. We do not sell standardized units of products and services, so we cannot provide relevant information on sales volume by providing data on the changes in product and service units sold. To provide additional information that may be useful to investors in breaking down and evaluating changes in sales volume, we present information about our revenue and various values and components relating to operating profit that are adjusted for foreign currency effects. We calculate constant currency revenue and operating profit measures by translating foreign currencies using the average exchange rates from the previous year instead of the current year.

  • How does SAP calculate constant currency numbers?

    It is a two-step process to get from our IFRS numbers to our constant currency non-IFRS numbers:

    Step 1: We eliminate certain effects from our IFRS numbers (see a description of these adjustments in our Explanation of non-IFRS Measures which is available at for more details on these eliminations). The resulting figures are our non-IFRS numbers.

    Step 2: We then adjust those non-IFRS numbers by eliminating currency effects. The result is our non-IFRS constant currency financial measures.

    The elimination of currency effects is achieved by translating foreign currencies using the average exchange rates from the previous year’s period (i.e. quarter) instead of the current year.

  • SAP’s guidance format – based on constant currencies

    SAP provides a yearly revenue and profit outlook, which is based on non-IFRS at constant currencies. We provide guidance on a non-IFRS constant currency basis because these numbers are used as a basis for SAP’s internal management reporting as well. In addition, we provide guidance at constant currencies since we cannot influence currency movements, and it helps prevent frequent changes in guidance due to fluctuations in currency.

  • P&L Structure Change Q1 2015
  • What is the background of the 2015 P&L Amendment?

    For more information on this P&L structure adjustment please refer to following link in the General Information section of our Website (webinar): Reporting Framework.

  • Will total revenue amounts change?

    No. Total revenue amounts will not change.