Google India's revenue drops 56% due to change in accounting standards

According to reports, Google India's profits increased during FY19 by 16 per cent to Rs 473 crore

by exchange4media Staff
Published - Oct 23, 2019 4:07 PM Updated: Oct 23, 2019 4:07 PM
Google

It has been reported that Google has moved the revenue recognition for its ‘AdWords’ business from India to Singapore-based Google Asia Pacific, this has reportedly led to a 56% drop in Google India's revenue to Rs 4,147 crore for the financial year ending March 2019. Google India's advertising revenue share also fell from 69% to 28%, with a larger portion now coming from what is listed as information technology (IT) and IT-enabled services (ITeS).

 The move was reportedly due to changes in accounting standards from IND-AS 18 to IND-AS 115.

However, according to the Ministry of Corporate Affairs (MCA) filings obtained from Tofler, Google India's profits increased during FY19 by 16 per cent to Rs 473 crore.

According to reports, a filing by Google India stated, “As the control to operate the AdWords platform is with GAP (Google Asia Pacific) and not with the company (Google India), accordingly, revenues and associated direct cost of sales are presented on a net basis in the statement of profit or loss and comprehensive income,” said the filing.

Google India now only recognises the “net revenues” it makes from India.

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