FOLLI - FOLLIE
Announcement
In response to Capital Market Committee's letter (date 11/6/2009 Prot. Num. 2396) on the published financial statements of 1.1-31.03.2009, we notify about the following:
-The company will be fully adjust to par.106 of the revised IAS 1 with regard to the presentation of the statements of changes in equity in the forthcoming interim financial statements, as the title Total Comprehensive Income from Taxes did not appear. Nevertheless the above title appeared correctly in the published statements Financial Data and Information.
- The titles of the financial statements Total Income Statements and Cash Flows will be adjusted in accordance with the provisions of IAS / IFRS, in subsequent interim financial statements.
-The Group has applied the accounting treatment of the recognition of goodwill from the acquisition of minority interests directly in equity. This method was internationally accepted and applied in most cases and is fully adapted by IAS 27.
Thus, based on the above, the Group changed its accounting policy in relation to the acquisition of minority percentages in order to present more reliable financial statements. The contrast that appears in the Financial Statements in relation to IAS 27, was a wording mistake and it will be adjusted in subsequent interim financial statements.
- The reference to IAS 14 (note 3.4) Segment Reporting which inadvertently had been reported, was deleted and the effective IFRS 8 Operating Segments will be referred to in subsequent interim financial statements.
- Due to a computer failure, compensations for key management of the Group and the company amounted to euro 1,170 million and euro 77 thousand respectively, though published in the statements Financial Data and Information.
- On the main categories contributing to the rise of «Other Receivables which, as indicated in Capital Market Committee's letter, is the result of Other Receivables and Other Debtors increase, we report that the nature of those amounts is the following:
a) Amounts given to production units with the intention to undertake excellent performance and competitive prices of large annual orders (estimated to $200 million) and at the same time insuring preferential discounts on stock purchases and foreign affiliates shops equipment in South East Asia amounting to $50 million or euro 37, 6 million.
b) Increasing demand on secondary activities (advertising - promotion - rental shop to view products, etc. of HDF Group totaling euro4.3 million
c) Short-term loan to a supplier of a subsidiary abroad of $1.3 million or euro1 million.
d) exchange differences of the conversion of related items at subsidiaries denominated in USD and equaling EUR 0.38 million euro.
Regarding the increase in liabilities we wish to inform that the comparison should be made in relation to the amount on 31/12/2008 of the category Other Obligations and Obligations other partners (increasing by euro7 million). This increase results mainly from the transfer of Long-term Liabilities to Other current Liabilities amounting to euro5.4 million, while the increase in the category «Valuation of Financial Instruments is due to a loss resulting from the valuation of derivatives (cash flow hedge) amounting to euro9.9 million which is clearly shown on the other total revenues.
-The company will be fully adjust to par.106 of the revised IAS 1 with regard to the presentation of the statements of changes in equity in the forthcoming interim financial statements, as the title Total Comprehensive Income from Taxes did not appear. Nevertheless the above title appeared correctly in the published statements Financial Data and Information.
- The titles of the financial statements Total Income Statements and Cash Flows will be adjusted in accordance with the provisions of IAS / IFRS, in subsequent interim financial statements.
-The Group has applied the accounting treatment of the recognition of goodwill from the acquisition of minority interests directly in equity. This method was internationally accepted and applied in most cases and is fully adapted by IAS 27.
Thus, based on the above, the Group changed its accounting policy in relation to the acquisition of minority percentages in order to present more reliable financial statements. The contrast that appears in the Financial Statements in relation to IAS 27, was a wording mistake and it will be adjusted in subsequent interim financial statements.
- The reference to IAS 14 (note 3.4) Segment Reporting which inadvertently had been reported, was deleted and the effective IFRS 8 Operating Segments will be referred to in subsequent interim financial statements.
- Due to a computer failure, compensations for key management of the Group and the company amounted to euro 1,170 million and euro 77 thousand respectively, though published in the statements Financial Data and Information.
- On the main categories contributing to the rise of «Other Receivables which, as indicated in Capital Market Committee's letter, is the result of Other Receivables and Other Debtors increase, we report that the nature of those amounts is the following:
a) Amounts given to production units with the intention to undertake excellent performance and competitive prices of large annual orders (estimated to $200 million) and at the same time insuring preferential discounts on stock purchases and foreign affiliates shops equipment in South East Asia amounting to $50 million or euro 37, 6 million.
b) Increasing demand on secondary activities (advertising - promotion - rental shop to view products, etc. of HDF Group totaling euro4.3 million
c) Short-term loan to a supplier of a subsidiary abroad of $1.3 million or euro1 million.
d) exchange differences of the conversion of related items at subsidiaries denominated in USD and equaling EUR 0.38 million euro.
Regarding the increase in liabilities we wish to inform that the comparison should be made in relation to the amount on 31/12/2008 of the category Other Obligations and Obligations other partners (increasing by euro7 million). This increase results mainly from the transfer of Long-term Liabilities to Other current Liabilities amounting to euro5.4 million, while the increase in the category «Valuation of Financial Instruments is due to a loss resulting from the valuation of derivatives (cash flow hedge) amounting to euro9.9 million which is clearly shown on the other total revenues.