29th Aug 2007 07:00
Faroe Petroleum PLC29 August 2007 29 August 2007 Faroe Petroleum plc ("Faroe Petroleum" or "the Company") First time adoption of International Financial Reporting Standards (IFRS) Faroe Petroleum, the AIM quoted oil and gas company focusing on exploration,appraisal and undeveloped field opportunities in offshore North West Europe,announces the publication of the restatement of its 2006 comparative financialinformation under IFRS (previously stated under UK Generally Accepted AccountingPractices (UK GAAP)). In September 2007 the Company will publish its interim results for the sixmonths to 30 June 2007 which will be the first results to be prepared under IFRSand will include IFRS comparative financial information for the six months to 30June 2006. The Company will present its first annual report and accounts underIFRS for the year ended 31 December 2007 which will include comparative IFRSfinancial information for the year ended 31 December 2006. Changes to the Group's reported financial information for the year ended 31December 2006 as a result of adopting IFRS are summarised as follows: UK GAAP IFRS Adjustments Restated1 IFRS £000 £000 £000 Income statement Operating loss (3,140) (787) (3,927) Loss after tax (1,588) (787) (2,375) Earnings per share (basic and diluted) (2.4) (1.2) (3.5) Balance sheet Net assets 55,747 (3,837) 51,910 1 The restatement of UK GAAP figures had no impact on the reported loss aftertax or net assets The adjustments arise principally due to the adoption of IFRS 6 - "Explorationfor and evaluation of mineral resources". Under UK GAAP, Faroe Petroleum hadadopted the full cost accounting method as permitted in the provisions of the UKOil Industry Accounting Committee's Statement of Recommended Practice (SORP) "Accounting for Oil and Gas Exploration, Development, Production andDecommissioning Activities". The IFRS accounting policy for oil and gasexpenditures is set out in detail in Section 4 of the IFRS first time adoptionstatement. The main impact of IFRS 6 on the Group's financial statements is that costswhich are incurred prior to the award of licences, are required to be expensedin the Income Statement. These costs included not only technical staff costsbut also seismic surveys. The implementation of IAS 12 - "Income Taxes" has not resulted in changes to theprimary statements of the Group but has resulted in a change in the Group'sunrecognised deferred tax assets which are principally generated by historictrading and pre-trading losses. The full IFRS first time adoption statement is available on the Company'swebsite. - Ends - For further information, call: Billy Clegg/Edward Westropp, Financial Dynamics 020 7831 3113Katherine Roe/Callum Stewart, Panmure Gordon & Co 020 7459 3600 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Faroe Petroleum Plc