Renault Takes $11 Billion Non-Cash Loss in Nissan Change (1)

Renault SA will recognize an estimated €9.5 billion ($11.2 billion) non-cash loss after changing the way it accounts for its stake in ailing Japanese carmaker Nissan Motor Co.

The new accounting method — which will align the value of the 36% stake with Nissan’s share price — has no cash impact and won’t affect the calculation of Renault’s dividend, the French automaker said Tuesday. Nissan’s shares have slumped 38% in the 12 months.

“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,” ...