DNO ASA (DNO.NO) announces preliminary results and impact of changes made to the presentation of the income statement under IFRS for Production Sharing Agreements (PSA).
DNO has previously issued information, through quarterly reports and DNO IFRS Transiton Reports, that the accounting treatment of PSAs may be changed from the working interest method (gross) to the net entitlement method.
Based on advice from the financial administration, the auditors and external consultants, in addition to what the Company believe is current practice, the Board of Directors of DNO ASA decided in a meeting 8. February 2006 to change the consolidated IFRS accounts to be in accordance with the net
entitlement method. This method is also applied by companies reporting under US GAAP. This will only have impact on DNO's mandatory financial statements and explanatory notes and will for the first time be applied in the full 4Q 2005 report to be released 15. February 2006. DNO will still apply the working interest method in certain parts of management presentations, key financial ratios, Result of operations tables.
No changes have been made to the condensed Cash Flow Statements, the Balance Sheets or Earnings Per Share, as the change in PSA presentation only leads to a reclassification between earnings before interest and tax (EBIT) and paid taxes within operating cash flows. Due to the change minor adjustments have been made to the deferred tax computation (IAS 12). To avoid any confusion and speculations the Board of Directors has decided to issue the attached condensed financial tables today.
DNO has previously issued information, through quarterly reports and DNO IFRS Transiton Reports, that the accounting treatment of PSAs may be changed from the working interest method (gross) to the net entitlement method.
Based on advice from the financial administration, the auditors and external consultants, in addition to what the Company believe is current practice, the Board of Directors of DNO ASA decided in a meeting 8. February 2006 to change the consolidated IFRS accounts to be in accordance with the net
entitlement method. This method is also applied by companies reporting under US GAAP. This will only have impact on DNO's mandatory financial statements and explanatory notes and will for the first time be applied in the full 4Q 2005 report to be released 15. February 2006. DNO will still apply the working interest method in certain parts of management presentations, key financial ratios, Result of operations tables.
No changes have been made to the condensed Cash Flow Statements, the Balance Sheets or Earnings Per Share, as the change in PSA presentation only leads to a reclassification between earnings before interest and tax (EBIT) and paid taxes within operating cash flows. Due to the change minor adjustments have been made to the deferred tax computation (IAS 12). To avoid any confusion and speculations the Board of Directors has decided to issue the attached condensed financial tables today.
The full report will be available as original announced on February 15.
