Northland Changes to IFRS Accounting Standards
(Thomson Reuters ONE) -
Luxembourg, June 30, 2010: Northland Resources S.A. ("Northland" or "the
Company") announces that as a Luxembourg domiciled company with shares listed on
an exchange in the European Economic Area "EEA" the Company is subject to the
rules and regulations of the Commission de Surveillance du Secteur Financier
("CSSF"). These regulations include a requirement to file information in
accordance with IFRS. Accordingly, as further described in the interim
consolidated financial statements and the Management's Discussion & Analysis
filed on June 30, 2010, the Company has advanced its IFRS conversion and has
selected an IFRS transition date of February 1, 2007. The April 30, 2010 Interim
consolidated financial statements are the Company's first set of IFRS financial
statements and, as a result, includes notes disclosing extensive transitional
information for first time adopters and full disclosure of all new IFRS
accounting policies.
Initial Adoption of International Accounting Standards
IFRS 1 ''First Time Adoption of International Accounting Standards'' sets forth
guidance for the initial adoption of IFRS. Under IFRS 1 the standards are
applied retrospectively at the transitional balance sheet date with all
adjustments to assets and liabilities as stated under GAAP taken to retained
earnings unless certain exemptions are applied. The exemptions applied on
first-time adoption have been described in the note 6 ("Transition to IFRS") to
the interim consolidated financial statements as at April 30, 2010.
Since the Group is currently seeking financing with a potential combination of
debt, equity and off-take agreements, it may be required to provide financial
statements under IFRS with three years of comparative data. Therefore, the Group
elected to adopt IFRS with an adoption date of February 1, 2010 and a transition
date of February 1, 2007.
Impact of IFRS
IFRS employs a conceptual framework that is similar to Canadian GAAP; however
significant differences exist in certain matters of recognition, measurement and
disclosure. While the adoption of IFRS did not change actual cash flows, the
adoption resulted in changes to the reported financial position and results of
operation. In order to allow the users of the financial statements to better
understand these changes, the Company has provided reconciliations between
Canadian GAAP and IFRS for the total assets, total liabilities, shareholders
equity and net earnings in the note 6 ("Transition to IFRS") to the interim
consolidated financial statements as at April 30, 2010.
The only significant difference resulting in a reconciling item between Canadian
GAAP and IFRS, as presented in the reconciliations included in the Transition to
IFRS note to the April 30, 2010 IFRS interim consolidated financial statements,
relates to the translation of foreign operations. Under Canadian GAAP, the
subsidiaries have been considered to be integrated and as a result, their
functional currencies are the same as the parent's functional currency (Canadian
dollar). Accordingly, the temporal method of translation was used in order to
translate the non-monetary assets at historical exchange rates. Under IFRS each
entity's functional currency is determined with reference to the primary
economic environment. This has resulted in foreign subsidiaries functional
currencies being assessed as Swedish Krona for the Swedish subsidiaries and Euro
for the Finnish subsidiaries. Under this method the subsidiaries are
consolidated by translating their assets and liabilities at the rate of exchange
prevailing at the reporting date and their income statements are translated at
the average rate of exchange for the period.
The effect of the differences described above mainly impacted the exploration
assets, the foreign currency translation reserve and the net financial items and
are summarized as follows as at 31 January of each financial year:
(CAD millions) 2007 2008 2009
2010
Exploration assets Canadian GAAP
17.9 43.1 83.1 107.6
IFRS
17.3 42.8 79.9 100.4
Foreign currency translation reserve Canadian GAAP -
- - -
IFRS - 0.7 0.6
1.1
Net financial items(1) Canadian GAAP NA 4.8
5.8 1.1
IFRS NA 3.3 2.8
(3.5)
(1): caption of the statement of comprehensive income
The Company's consolidated annual financial statements were prepared in
accordance to Canadian GAAP until January 31, 2010. For the fiscal period
February 1, 2010 to April 30, 2010, the Company has prepared its financial
results according to Canadian GAAP and IFRS. The financial results prepared
according to Canadian GAAP were released to the market June 14th; today the
Company has released its financial results prepared in accordance with IFRS.
Going forward, the Company will only prepare IFRS-compliant financial results.
For further information, please contact:
Eva Kaijser, Chief Financial Officer, tel. +46 70 932 09 01
Or visit our website at:www.northland.eu
This information is subject of the disclosure requirements acc. to §5-12 vphl
(Norwegian Securities Trading Act)
[HUG#1428748]
This announcement is distributed by Thomson Reuters on behalf of Thomson Reuters clients.
The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and other applicable laws; and
(ii) they are solely responsible for the content, accuracy and originality of the information contained therein.
All reproduction for further distribution is prohibited.
Source: Northland Resources S.A. via Thomson Reuters ONE
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Datum: 30.06.2010 - 19:13 Uhr
Sprache: Deutsch
News-ID 23278
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