IFRS – Impact on Abano financial statements
Abano Healthcare Group Limited is one of the first entities in New Zealand to report their year end results under the new NZ International Financial Reporting Standards (NZ IFRS). A presentation on the impact of NZ IFRS on the financial statements was held on 3 August 2006.
The adoption of IFRS has had a significant impact on Abano’s recently reported 2006 Income Statement and Balance Sheet. While not having any cashflow implications, the two significant and material differences for the Abano under IFRS, is in the treatment of goodwill and the accounting treatment of the put options granted to the vendors of Bay Audiology and the Orthotics Centre.
These changes have raised various questions as people start to digest the implications of IFRS. To aid in understanding these changes and the accounting treatment under IFRS for Abano going forward, Abano management held a briefing session on Thursday the 3rd of August at 4pm. This included the calculation methodology of the put options and their accounting treatment under IFRS.