HTML Preview Traditional Income Statement Format page number 1.
Directors’ traditional income statement and balance sheet
for the year ended 30 June 2007
Due to the number of accounting adjustments that have resulted from changes to accounting standards in the past, the directors
of Oryx Properties Limited (“Oryx”) have pleasure in presenting a traditional income statement and balance sheet. This is for the
benefit of users who wish to analyse the Oryx financials in a more user friendly format.
The following balance sheet and income statement are therefore unaudited and are provided as additional information, in a
format better suited to user analysis. They are identical to the audited financials with the following exceptions:
1)
Removal of the effects of straight lining of rentals
IFRS requires rentals to be recognised on a straight line basis over the period of the lease. This means that all escalations
are taken into account upfront and smoothed over the period of the lease. In the audited financials this results in an
increase to rentals in the first half of the lease and a decrease in the second half. The increase is recognised in the income
statement as rental and in the balance sheet as a non-current receivable. There is a corresponding decrease in the
revaluation of the investment properties. In the IFRS financials, the effects of straight lining of rentals are then moved to
non-distributable reserves.
All straight lining adjustments have been removed in the traditional balance sheet and income statement as presented
herein.
2)
Removal of the provision for deferred taxation on revaluations
IFRS requires deferred taxation to be raised on the revaluation of land on the basis of the tax consequences that would
follow from recovery of the carrying amount of that asset through sale and on buildings at the corporate tax rate.
However, there is no capital gains tax in Namibia, and the deferred taxation on revaluations of both land and buildings
has therefore been removed in the financials below.
The IFRS financial statements contain a prior year adjustment in respect of the change in rate used for the calculation of
deferred tax on land revaluations. This has no effect on the traditional income statement or balance sheet.
3)
Removal of the derivative
The derivative relates to a put and call option which Bank Windhoek has on the building it leases from Oryx. IFRS requires
that this option is revalued each year and the gain or loss is taken to the income statement. In the IFRS financial statements
this is then moved to non-distributable reserves. The derivative has been removed from the traditional financials as it does
not affect distributions and the exercising of the put/ call option will depend on the market conditions on the date of
Bank Windhoek's lease renewal.
4)
Removal of the effects of reclassifying and amortising debenture premium
IFRS requires that amounts that were classified as share premium are now allocated to debenture premium and reflected
as a long-term liability. This amount is required to be amortised over the minimum contractual period of the debentures,
being the remaining period of 25 years from December 2002. As the amount is not a liability, and is legally classified as
share premium, the traditional financials have classified these amounts back to share premium and have removed the
amortisation thereof.
A reconciliation back to the audited IFRS financials is presented below both the income statement and balance sheet.