14 November 2007
Operating Result CPN Q307
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 412 million for the three-month period ended September 30, 2007 ,
according to the consolidated financial statement. However, the company's
financial statement over the same period showed a net income of THB 431
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
September 30,2007 and the comparable period in 2006 increased by THB 19
million and THB 2,718 million, respectively. (that is, increased by THB 0.01
per share and THB 1.25 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 September 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.