Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Diligent turns up another accounting headache

Diligent turns up another accounting headache

Jan. 30 (BusinessDesk) - Diligent Board Member Services, the governance software developer, has discovered another accounting hiccup, misclassifying a note receivable from a related entity and will have to further tweak its books.

The New York-based and NZX-listed company recognised a US$6.8 million receivable from a promissory note from Services Share Holding as an asset, when it should have deducted it from stockholders’ equity while the note was outstanding, Diligent said in a statement.

The note was repaid with cash and shares and retired in 2012, and arose when Services Share Holding, the predecessor entity, transferred the Diligent assets into the current holding company. It was to let Services Share Holding satisfy outstanding liabilities it held that came from developing the business.

Diligent will fix the mistake, which is in its financial statements from 2007 through to 2012, by reducing the asset on its balance sheet and stockholders’ equity by the amount outstanding at the end of each period, it said. The changes are non-cash adjustments and won’t affect cash-flow or revenue.

“It is not currently anticipated that the accounting corrections required in connection with the reclassification of the note receivable will impact the company’s timing to complete its previously announcement restatement,” it said.

Diligent has had to restate its accounts after incorrectly recognising revenue too early under US GAAP accounting rules. The company has until the end of February to restate its books to avoid having trading in its NZX-listed shares suspended by the stock market operator.

The shares slipped 0.2 percent to $4.39 in trading today, and have slumped 45 percent since June last year when it announced the revenue-recognition mistake.

(BusinessDesk)


© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Prefu Roundup: Forecasts Revised, Surplus Intact

The National government heads into the election with its Budget surplus target broadly intact, delivering a set of economic and fiscal forecasts marginally revised from May to reflect weaker commodity prices and a lower tax take. More>>

ALSO:

Convention Centre: Major New SkyCity Hotel And Laneway For Auckland

Today SKYCITY Entertainment Group Limited revealed plans to build a new hotel and pedestrian laneway of bars, restaurants and boutique shopping on land it owns in the Nelson and Hobson Streets block, expanding the SKYCITY Entertainment Precinct. More>>

ALSO:

Igniting The Spark: Bringing The Digital Enabler To Life

Changing a name is, relatively speaking, the easy part of a re-invention. Changing a culture, getting all the ducks in a row, turning yourself inside-out to become customer-inspired is a much bigger challenge. More>>

ALSO:

Ebola And NZ: Targeted Screening At Airport But Risk Low

The risk of any cases of Ebola in New Zealand remains very low, but health and border authorities are well prepared... anyone arriving in New Zealand who in the last three weeks has visited countries affected will be screened for symptoms of the disease. More>>

ALSO:

Scoop Business: Brewer Seeking Crowd-Funding Cancels Shareholders’ Dividends

Shareholders in Renaissance Brewing company, the first business to seek equity through crowd-funding in New Zealand, have cancelled their claim on $147,000 of accumulated earnings “to make Renaissance a more attractive investment opportunity.” More>>

ALSO:

It's Spark Now:
Why Telecom Wanted To Change

New Zealand led the world when Chorus demerged from Telecom. It gave us a telecommunications industry structure where the network is completely separated from the products and services it delivers. The changes brought about a new market dynamic and it dramatically changed Telecom’s role. More>>

ALSO:

Glass Half Empty: Dairy Prices Fall To Lowest Since 2012

Dairy product prices slumped to the lowest level since October 2012 in the latest GlobalDairyTrade auction, paced by whole milk powder and cheddar. More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus

Standards New Zealand

Standards New Zealand
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news