ohncom - SAICA circular on operating leases and re
ohncom - SAICA circular on operating leases and restatement of Johncom 2005
financial results
Johnnic Communications Limited
Registered in the Republic of South Africa
(Registration number 1889/000352/06)
Share code: JCM & ISIN: ZAE000024584
(`Johncom`)
SOUTH AFRICAN INSTITUTE OF CHARTERED ACCOUNTANTS (SAICA) CIRCULAR ON OPERATING
LEASES, AND RESTATEMENT OF JOHNCOM 2005 FINANCIAL RESULTS
Subsequent to the 23 June 2005 release by Johncom of its results for the year
ended 31 March 2005, the South African Institute of Chartered Accountants
(SAICA) issued Circular 7/2005: Operating Leases on 2 August 2005. The circular
refers to the requirements of AC 105: Leases, in terms of which operating leases
with fixed rental increases must be accounted for on the straight-line basis.
In South Africa, the accounting treatment of such operating leases was generally
not consistent with the requirements of AC 105.
The accounting for operating leases on the straight-line basis as opposed to the
cash flow basis has no impact on Johncom`s cash flows or cash position, but
reduces headline earnings in respect of the year ended 31 March 2005 by R1,3
million (1 cent per share), and by R3,8 million (4 cents per share) in the 2004
comparative year.
The 2004 opening accumulated profits are adjusted downwards by a R76,1 million
charge.
The full restated financial statements will be included in the 2005 annual
report.
Johannesburg
18 August 2005
Sponsor to Johncom:
Nedbank Capital
Date: 18/08/2005 09:52:06 AM
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