23rd Sep 2005 15:49
Soco International PLC23 September 2005 SOCO International plc ("SOCO" or "the Company") Adoption of International Financial Reporting Standards (IFRS) SOCO is an international oil and gas exploration and production company,headquartered in London traded on the London Stock Exchange and a constituent ofthe FTSE 250 Index. The Company has continuing interests in Vietnam, Yemen,Libya, Thailand and the Republic of Congo with ongoing production operations inYemen. SOCO today publishes the restatement of its 2004 comparative financialinformation from UK Generally Accepted Accounting Practices (UK GAAP) to IFRS inUS dollars. With effect from 1 January 2005 SOCO will report its results inaccordance with IFRS. Additionally, SOCO's financial statements will bepresented in US dollars, following the decision by the Group to adopt US dollarsas its presentation currency reflecting the primary economic environment inwhich the Group operates. On 27 September 2005 the Group will publish its interim results for the sixmonths ended 30 June 2005, which will be the first results to be prepared underIFRS and in US dollars, and will include IFRS comparative financial informationfor the six months ended 30 June 2004. The Group will present its first annualreport and accounts under IFRS in US dollars for the year ended 31 December2005, which will include comparative IFRS financial information for the yearended 31 December 2004. The Group's date of transition to IFRS is 1 January2004. Changes to the Group's reported financial information for the year ended 31December 2004 as a result of the adoption of IFRS are summarised as follows: UK GAAP Conversion to US Change under IFRS Dollars IFRS £'000 $'000 $'000 $'000 Income Statement Operating profit 12,438 22,830 641 23,471 Profit after tax 15,499 28,930 641 29,571 Earnings per share (basic) 22.2p 41.5c 0.9c 42.4c Balance Sheet Net Assets 134,356 258,027 (10,840) 247,187 Changes arise principally due to the following adjustments: • IFRS 2 "Share-based Payment": The fair value of share based incentiveawards is calculated at the date of grant using an option pricing model and isrecognised over the performance period. Under UK GAAP, the intrinsic value ofthe awarded shares at grant date is recognised over the performance period. • IFRS 6 "Exploration for and Evaluation of Mineral Resources":Pre-licence acquisition costs have been expensed as incurred and income on thesale of exploration ventures has been recognised when realised. Under UK GAAP,these costs net of the income were included in intangible fixed assets pendingdetermination of commerciality. Further, under UK GAAP the level at whichassets were aggregated for impairment assessment was higher than under IFRS,giving rise to an additional impairment on transition. • SOCO has chosen to adopt the US dollar as its presentation currency inaccordance with IAS 21 "The Effects of Changes in Foreign Exchange Rates".SOCO's UK GAAP financial statements were prepared using pounds sterling as thereporting currency. Additionally, changes in the form and presentation of the financial informationhave been implemented in compliance with IAS 1 "Presentation of FinancialStatements", IAS 7 "Cash Flow Statements" and IAS 16 "Property, Plant andEquipment". The full text of the Group's restatement of 2004 financial information uponadoption of IFRS is available on SOCO's website within the Financials section.The document includes the preliminary comparative 2004 financial information forthe year ended 31 December 2004 and the six months ended 30 June 2004, theopening balance sheet as at 1 January 2004, and the relevant audit and reviewreports addressed by Deloitte & Touche LLP to the Directors of SOCO. Thedocument additionally includes the Group's accounting policies as revised toreflect IFRS. SOCO's website can be accessed at www.socointernational.co.uk. 23 September 2005 ENQUIRIES: SOCO International plc Roger Cagle Deputy Chief Executive Tel: 020 7747 2000 and Chief Financial Officer Pelham Public Relations James Henderson Tel: 020 7743 6673Charles Vivian Tel: 020 7743 6672 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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