15 พฤษภาคม 2550
The effect of the change in accounting for investment
The company would like to report on the effect of the change in accounting
for investment in subsidiary as follows:
In the three-month period ended March 31, 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 415 million for the three-month period ended March 31,
2007 , according to the consolidated financial statement. However, the company's
financial statement over the same period showed a net income of THB 434 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 March 31,
2007 and the comparable period in 2006 increased by THB 17 million and decreased
by 19 million, respectively. (that is,increased by THB 0.01 per share and
decreased by THB 0.01 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 March 31, 2007, such as investment in a
subsidiary and retained earnings on the balance sheets, decreased by THB 534
million. The cumulative effect of the accounting policy has been presented
under the heading of "Comulative 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.