SET Releases
Note to explain a change in accounting for investments
14 May 2007
(Translation)
May 11, 2007
Subject : Note to explain a change in accounting for investments
Attention : Director and Manager of the Stock Exchange of Thailand
Thanulux Public Company Limited 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
separate 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
75.61 million for the three-month period ended March 31, 2007, according
to the consolidated financial statement. However, the separate financial
statement over the same period showed a net income of THB 73.77 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 decreased by THB 1.84
million and 0.96 million, respectively. (that is, decreased by THB 0.02
per share and THB 0.01 per share, respectively.) This is because the
separate financial statement did not include any share of profits from
investments.
2. The effect from the restating to other items on the separate
financial statement for the quarter ended March 31, 2007, such as
investment in a subsidiary and the retained earnings on the balance
sheets, increased by THB 1.51 million. 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 separate
financial statement. It did not have any effect on the consolidated
financial statements or business fundamentals.
Please kindly acknowledge accordingly and publicize as appropriate.
Faithfully Yours,
Varindr Leelanuwatana, Dusadee Soontrontumrong
(Mrs. Varindr Leelanuwatana, Ms. Dusadee Soontrontumrong)
Managing director, Deputy managing director