Thursday 12th March 2009 |
Text too small? |
SOE half-year reports are due out tomorrow, and Meridian executives told the commerce select committee this morning that IFRS accounting rules would create "significant unrealises losses" on the smelter contracts, which account for 40% of Meridian's total electricity production.
The Tiwai Point smelter, formerly owned by Comalco, uses 14% of total New Zealand electricity produced when running at full capacity.
The contract had changed from a physical contract to a financial instrument and the there would be "a reasonably steep impact on our performance because of the IFRS for that contract," said Meridian's chairman, Wayne Boyd.
The IFRS rules would create a volatile earnings profile in future, but Meridian had no intention of reporting to standards other than IFRS, despite international debate about their appropriateness for earnings reporting.
"There's no doubt it causes us grey hairs caused by accounting changes which are not real," said Boyd. "You will have to read the notes to understand the result."
No comments yet
Spark New Zealand appoints new director to the Spark Board
AFT to announce full year results on May 23 2024
CRP - Korella North Takes Another Two Steps Forward
May 3rd Morning Report
ASB workers to strike as bank proposes an effective pay cut
Rising tides, sinking stocks: study explores cost of climate change
May 2nd Morning Report
AGL - Change in Senior Management
Devon Funds Morning Note - 01 May 2024
Rick Christie to step-aside as a non-executive director