| Mon 23 Feb 2009, 15:30 | | ARQ - Anooraq early adopts International Financial Reporting Standards |
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ARQ
ARQ
ARQ - Anooraq early adopts International Financial Reporting Standards
Anooraq Resources Corporation
(Incorporated in British Columbia, Canada)
(Registration number 10022-2033)
JSE share code: ARQ
TSXV share code: ARQ
NYSE Alternext share code: ANO
ISIN: CA03633E1088
("Anooraq" or "the company")
Anooraq early adopts International Financial Reporting Standards
Anooraq wishes to announce that its application to early adopt International
Financial Reporting Standards ("IFRS") has been approved by the British
Columbia Securities Commission.
The company has chosen to early adopt IFRS and will commence reporting under
these standards for the period beginning January 1, 2009. Comparative periods
for fiscal 2008 will also be restated under IFRS.
As background, in February 2008, the Canadian Accounting Standards Board
confirmed that IFRS will replace Canadian generally accepted accounting
policies ("GAAP") for all publicly accountable enterprises for financial
periods beginning on and after January 1, 2011, with the option available for
enterprises to early adopt upon receipt of approval from the Canadian
Securities regulatory authorities. The United States Securities and Exchange
Commission has also authorized foreign private issuers to file financial
statements using IFRS without having to include US GAAP reconciliation.
Adoption of IFRS will result in a single accounting standard whereas currently
we report under Canadian GAAP with US GAAP reconciliation. The company`s South
African subsidiary, Plateau Resources (Proprietary) Limited, currently reports
under IFRS. The use of a single accounting standard will allow the company to
reduce costs and streamline its financial reporting by developing common
reporting systems and consistency across its subsidiaries and joint ventures.
The company has established a comprehensive convergence plan and established a
Steering Committee to manage the transition and provide regular updates on the
progress of the convergence project to the company`s Audit Committee and the
Board of Directors. A detailed timetable was prepared to manage Anooraq`s
transition to IFRS, which is largely complete.
The transition consists of three primary phases:
Initial Scoping and Impact Assessment Analysis: to isolate key areas that will
be impacted by the transition to IFRS.
Evaluation and Design: to identify specific changes required to existing
accounting policies, information systems and business processes, together with
an analysis of policy alternatives allowed under IFRS and development of draft
IFRS financial statements.
Implementation and Review: to execute the changes to information systems and
business processes, completing formal authorization processes to approve
recommended accounting policy changes and training programs across the
company`s finance and other staff, as necessary. It will culminate in the
collection of financial information necessary to compile IFRS-compliant
financial statements, embedding IFRS principles in business processes, and
Audit Committee approval of IFRS financial statements.
Disclosure of the transition process is planned to proceed as follows:
Additional details on the convergence plan and transition process have been
included in the company`s Amended Management Discussion and Analysis for the
period ended September 30, 2008, which has been filed at www.sedar.com and
released on SENS.
The company`s annual Management Discussion and Analysis for the year ended
December 31, 2008, will include, to the extent known, quantitative information
regarding the impact of adopting IFRS on key line items in the annual
financial statements.
The company`s first financial statements completed under IFRS will be the
interim financial statements for the three months ending March 31, 2009, which
will include notes disclosing extensive transitional information and full
disclosure of all new IFRS policies.
For further information on Anooraq and its South African properties, please
visit our website www.anooraqresources.com or call investor relation services
in South Africa at +27 11 883 0831 or in North America at 1 800 667 2114.
Sandton
23 February 2009
Sponsor: QuestCo Sponsors
The TSX Venture Exchange does not accept responsibility for the adequacy or
accuracy of this release.
The NYSE Alternext has neither approved nor disapproved the contents of this
press release.
Date: 23/02/2009 15:30:01 Produced by the JSE SENS Department.
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