VTEX announced its intention to transition its financial reporting standards from International Financial Reporting Standards (IFRS) to U.S. Generally Accepted Accounting Principles (US GAAP), effective for the fiscal year commencing January 1, 2025. This move aims to enhance financial transparency and comparability with industry peers.
The conversion will result in several primary impacts on the company's financial statements. For fiscal year 2024, share-based compensation expenses are expected to increase by $2.2 million, while the hyperinflation currency adjustment for VTEX Argentina will lead to a $5.8 million increase in Financial Result under Other Income (Loss), Net.
Additionally, the reclassification of office leases from financial to operating leases is projected to decrease Income From Operations by $0.6 million in FY24. The Board of Directors has approved this transition, and shareholder approval is being sought at the upcoming annual shareholders meeting on April 25, 2025.
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