14 August 2007
OperatingResultCPNQ207
The company would like to report on the effect of the change in
accounting for investment in subsidiary as follows:
In the year 2007, the company changed its accounting policy
regarding investment in a subsidiary so that the company's financial statement
which formerly reported investment using the equity method, now reports using
the cost method. This is to comply with TAS 44. Thus the company restated its
financial statement by using the historical cost as the cost of the investment
in a subsidiary of the separate financial statement. This adjustment caused
the net income on the separate financial statement to differ from that
reported in the consolidated financial statement. The company had net income
of THB 435 million for the three-month period ended June 30, 2007 , according
to the consolidated financial statement. However, the company's financial
statement over the same period showed a net income of THB 3,204 million.
Therefore, the company would like to clarify with the additional information
as follows:
1. After restating, net income for the three-month period ended
June 30, 2007 and the comparable period in 2006 increased by THB 2,769 million
and decreased by THB 98 million, respectively. (that is, increased by THB 1.27
per share and decreased by THB 0.04 per share, respectively.) This is because
the company's financial statement did not include any share of profits from
investments.
2. The effect from the restating to other items on the company's
financial statement for the quarter ended June 30, 2007, such as investment in
a subsidiary and retained earnings on the balance sheets, decreased by THB 516
million and decreased by THB 713 million, respectively. The cumulative effect
of the accounting policy has been presented under the heading of "Cumulative
effect of the change in accounting policy for investments in subsidiaries in
the separate financial statements" in the statement of changes in
shareholders' equity.
However, the change of accounting policy affects only the
company's financial statement. It did not have any effect on the consolidated
financial statements or business fundamentals.
(Mr.Naris Cheyklin)
Senior Executive Vice President & CFO
Central Pattana Public Co.,Ltd.