Barry Callebaut welcomes decision of SIX Swiss Exchange Sanction Commission
(Thomson Reuters ONE) -
Barry Callebaut AG / Barry Callebaut welcomes decision of SIX Swiss Exchange Sanction Commission processed and transmitted by Hugin AS. The issuer is solely responsible for the content of this announcement.
Zurich/Switzerland, July 20, 2010 - Barry Callebaut AG, the world's leading
manufacturer of high-quality cocoa and chocolate products, welcomes the decision
by the Sanction Commission of SIX Swiss Exchange announced today, under which
Barry Callebaut is cleared of all charges relating to application of IFRS in its
consolidated financial statements for fiscal year 2007/08.
Expert opinions differ regarding application of IAS 2 and IAS 39
On November 6, 2008, Barry Callebaut published the 2007/08 consolidated
financial statements audited by KPMG AG (KPMG). KPMG confirmed that the
consolidated financial statements gave a fair presentation of the company's
financial position and financial performance in accordance with International
Financial Reporting Standards (IFRS). SIX Exchange Regulation, as the regulatory
authority for listed companies, also reviewed the financial statements and
concluded that two standards had been violated: IAS 2 in connection with the
valuation of inventories and IAS 39 in connection with treatment of inventories
as hedging instruments in a fair value hedge accounting model. In response,
Barry Callebaut submitted an opinion by KPMG in the subsequent sanction
proceedings stating that the reporting method selected offered the best possible
way to provide information about the business model. In addition, Barry
Callebaut submitted an opinion from the Institute of Accounting, Controlling and
Auditing at the University of St. Gallen that also confirms that the accounting
model used by Barry Callebaut is consistent with IFRS rules. The Sanction
Commission mandated a partner of PricewaterhouseCoopers AG (PwC) to provide an
expert opinion as an additional expert. This opinion represents a third view of
how IAS 2 and IAS 39 can best be applied to Barry Callebaut's business model.
As a result, the Sanction Commission held that different recognized experts had
arrived at different results regarding application of IFRS and had reached
different opinions as to the best way to report information to investors.
According to the Commission, the company had obviously relied to a considerable
degree on expert knowledge in order to achieve adequate compliance with IFRS. As
a consequence, the Sanction Commission cleared Barry Callebaut and its
representatives of all charges and did not issue a sanction or require payment
of the costs of the proceedings.
In the view of Barry Callebaut, both the method favored by KPMG and the method
favored by the PwC expert for valuing inventories and applying hedge accounting
would ultimately lead to the same result. Accordingly, the profit figures
reported by Barry Callebaut in the audited 2007/08 annual report are correct.
Change in the application of IAS 2 and IAS 39 as of fiscal year 2010/11
Due to the fact that acknowledged experts arrived at different interpretations
regarding the accounting model to be used, Barry Callebaut has decided to modify
the accounting model used to date.
In the revised model, inventories will be valued at the lower of cost and net
realizable value. In the future, the broker-trader exemption, according to which
inventories are fair valued, will no longer be applied nor will such inventories
be designated as hedging instruments to hedge firm sales commitments for
chocolate. The latter will consequently no longer be fair valued. The cocoa
price risks related to inventories exceeding these firm sales commitments will
be hedged with cocoa futures in a fair value hedge relationship.
This revised model, which will be introduced prospectively as from fiscal year
2010/11, will produce essentially the same result with regard to presentation in
the income statement as the accounting model used to date. The differences will
involve only some changes in the presentation of the balance sheet and
disclosures provided in the notes. In accordance with IFRS, prior-year figures
will not be restated.
* * *
About Barry Callebaut (www.barry-callebaut.com):
With annual sales of about CHF 4.9 billion for fiscal year 2008/09, Zurich-based
Barry Callebaut is the world's leading manufacturer of high-quality cocoa and
chocolate - from the cocoa bean to the finished product on the store shelf.
Barry Callebaut is present in 26 countries, operates more than 40 production
facilities and employs about 7,500 people. The company serves the entire food
industry, from food manufacturers to professional users of chocolate (such as
chocolatiers, pastry chefs or bakers), to global retailers. Barry Callebaut is
the global leader in cocoa and chocolate innovations and provides a
comprehensive range of services in the fields of product development,
processing, training and marketing. The company is actively engaged in
initiatives and projects that contribute to a more sustainable cocoa supply
chain.
* * *
Contacts
For investors and financial analysts: For the media:
Evelyn Nassar Gaby Tschofen
Head of Investor Relations VP Corporate Communications
Barry Callebaut AG Barry Callebaut AG
Tel.: +41 43 204 04 23 Tel.: +41 43 204 04 60
evelyn_nassar(at)barry-callebaut.com gaby_tschofen(at)barry-callebaut.com
The complete news release can be downloaded from the following link:
[HUG#1432547]
--- End of Message ---
Barry Callebaut AG
P.O. Box Zurich null
WKN: 914661;ISIN: CH0009002962;
News Release (PDF): http://hugin.info/100441/R/1432547/378689.pdf
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Source: Barry Callebaut AG via Thomson Reuters ONE
Unternehmensinformation / Kurzprofil:
Datum: 20.07.2010 - 07:30 Uhr
Sprache: Deutsch
News-ID 24139
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Kategorie:
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